Vibration

No, the imbalanced flywheel being balanced with the crank and the harmonic damper is the normal balance process with an external balance engine setup. The imbalance in the flywheel OR TC, and the imbalance in the damper, are there to help the balance of the crankshaft. Any 'evening things out' is between the crankshaft on one hand, and the imbalanced damper, and the flywheel (flexplate) OR TC, on the other hand.

The flywheel used in the balance process can be the one you have (unbalanced) or can be a neutral balance flywheel with the proper weight added at the right spot (to simulate an external balance flywheel OR TC). Similarly, once it is installed in the car, the flywheel OR the TC can be imbalanced but not both.

Too bad the ring gear is not on the flywheel/flexplate or you could start the car with the TC and trans out and check the vibration. If you were nearer, you could borrow our spare /6 TC to test. Maybe someone near has one you could borrow.

Looking at the pix of your damper, I am not so sure it is right. The flat area on the inner ring does not seem to have nearly enough weight removed at that distance from center to be like a regular 360 external balance damper. Look here and check the 360 view to see the normal external balance weight:

http://www.summitracing.com/parts/sum-163318/overview/make/dodge

Got any info on the damper itself? You refer to flats on 'top and bottom'...are there 2 flats on opposite sides of the inner ring?