I had a brass pilot bushing, but now I'm running a steel needle bearing one cause I couldnt get another brass one in time after the motor build. I'd get the flywheel machined for sure, it'll make it that much better of an install. As far as your adjustment issues, its most likely a "finger" broke on the three finger style clutch, it will cause release problems. My dad had a 79 K10 where one of those fingers broke and it wont pull the pressure plate evenly back causing it to drag. I also had a finger break on my 78 F150 and on my 67 Fairlane. I believe the diaphram style clutch is much more reliable long term.
However check your body mounts and body mount surfaces good as well, cause last year I had to adjust my clutch on two separate trips to uwharrie. I couldnt get the clutch to release when flexed out on rocks, the cab had rusted away from the body mount on the drivers firewall and it was falling lower on the frame. That was throwing the length off between the pedal and the z linkage, so the pedal wasnt moving the fork enough. This may not be your issue but it drove me crazy till i figured that out.
You should follow the break in for sure that centerforce recommends (I think its just dont go WOT for a couple hundred miles or so and try to do some stop and go driving). Also you may have to pop the overcenter spring (the coil spring on the pedal under the dash) if you have one or if the pedal wont come back up. A diaphram clutch doesnt have as much pressure as coil spring clutch. The install instructions should mention that also. I didnt have to remove mine, but I thought I'd mention that so your not surprised.