Ok, so I said screw it, lets see how it runs. Reinstalled blades (correctly this time :duh and tested. It just ate a 3.5" chuck of oak like candy. Live and learn - thanks everyone!
Good news, Sound like its working as it should. BTW, on the warped flywheel. My BX62s flywheel looks warped also if I check just the outer edge. However, if you check the blade/anvil clearance - the warp is down to less than a 64th of an inch.