[Kube]

Your flywheel most certainly needs to be resurfaced.
Removing the engine in your car is approximately a two to three hour task at most. This was hardly a huge burden upon the owner "back in the day".
As you already have the transmission removed, I'd suggest you simply yank the engine out. In the long run, you'll most likely be glad you did.
While it's out, you may want to clean it up and repair anything that may likely show up.