flywheel too big?

[flatmotor40]

Just bought a new flywheel from Speedway and it is about 1/8 larger on the ring gear.The old flywheel has kinda a radius on the teeth but the new one doesn't.It it hitting the cast housing on my 59ab at the 12 o'clock position.Locks the motor up.Loosen the bolts just a little tap the flywheel back and it frees up.Can I grind the block or radius the flywheel teeth a little.The old flywheel has cracks all over it and it was chattering bad.Had to rebuild the trans so I needed to put a new clutch in while it was out.Thanks