The Stovebolt Site Forums The Shop Area Driveline Fly-wheel, Clutch Question.

If the flywheel is "smooth as glass" and "like it has been polished" it is possible it has become glazed. First...Please make sure you're not getting oil leaking from the rear main seal that runs out on the back side of the flywheel, spins up and across the top of the bell housing and drips down on the assembly. If oil is present on the back side of the flywheel, centrifugal force definitely can cause this to happen. You'll also see oil in the bottom of the flywheel cover and you'll have already identified a notable oil puddle on the floor below it.

Second, Please look for any discoloration (usually bluish, dark gray or occasionally purplish) on the flywheel and pressure plate. If it is mirror-like and feels very hard, that's glazing. Also look for cracking lines (pretty common on flywheels this old but not usually incorrectible)...generally they'll be just in the contact area. As Jerry said you can use an orbital sander to break up glazing. A professional resurfacing is the best way, of course. If oil leakage happens to be the problem, toss the clutch disc, please. I've never seen a way to remove oil from one of those and not have it ruin the flywheel if it gets re-used.