@mel - The smaller bushings are better because they have an oil pump underneath the second speed drive plate/starter clutch plate that supplies oil to the bushing/bell.
@ Tim - That brass bushing should be fixed on the crank. There are generally three holes in the crankshaft - two for oiling and one for a punch to hold the thing from spinning. I've run them like that before but it makes me nervous. They're supposed to be stationary.