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The thing about pounding a lot on the balancer is that you are really pounding on the thrust bearing of the main bearings. I was always uncomfortable with that which is why I started drilling my 6 motor cranks, which are also undrilled like the 265, for a balancer bolt/install tool. There is a tool you can buy that slips over the crank snout and acts as a guide for drilling a tapping the crank on a 235 chevy. It is on ebay and the guy who is selling it sells some really good parts, I have purchased from him myself. It costs 135. Not cheap I know. I know it's for a 235 but I use a small block tool to turn my 235 cranks so I know the crank snout od is the same size, so my guess is you could use that tool on your crank. But I am with the others, I would pull the balancer first and reinstall on the chance the key kicked up a speck.

I just looked at his website listing, he has the same tool for 283/327 so if anyone is so interested, there it is, a way to drill and tap the cranks for bolts and the use of an install tool.
 
I am with Rick L on this one. Yes, you can use a balancer bolt, and a long bolt to install the balancer. But it is not the ideal way and you do run the risk of pulling the threads and then having to redrill and rethread. What a pain, I know, I screwed one up one time using a bolt because I did not want to spend the 30 for the tool. Cost me more to do the repair. From that point on, always used a regular install tool. Invest in or rent the tool you will be glad you did. Now, as to the balancer, looking at the photo, it looks like it is a different balancer than the one you pulled off the motor. That is not to say that it is the right balancer, only that I agree that the new one appears to have a longer snout and thus will place the pulley further away from where the old balancer placed the pulley.
 
Wolfman:

If the new balancer is not going to work, you might consider using the old balancer. New balancers for 235 and 261 chevys are not available (with the exception of a very expensive hi-po unit) so i am generally stuck using original balancers. I just recently took two balancers out of my old cruddy pile of rusted balancers, took one apart to make a timing cover install tool and the other to use on a new motor. When I took the older and rougher one apart, the rubber inside was as perfect as the day it was installed, despite the very poor outward shape the balancer appeared to be in. The other I bead blasted and painted. It came out looking good and installed perfectly. Yours looks like it could use a little tlc on the pulley, a good bead blasting and paint job, and a repair sleeve over the snout to take care of the groove. Drill and tap the crank snout for a bolt and install the balancer with the proper tool, and then install a balancer bolt for good measure and you should be good to go.
 
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