OK guys thanks for the pointers.
1. I did not resurface the flywheel. But the release is smooth so I doubt that's the problem.
2. There is no pilot bearing, it is strictly a bushing and fits well.
3. The pressure plate, disk and throwout bearing complete with housing are all new.
4. Thanks for the tip on the heater flap. I'll check out the hardware store for some grommets the right size.