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When on jacks, engine running, in neutral and clutch engaged it is normal for the wheels to move, there is drag within the transmission.
I don't follow your words totally - when you have the clutch pedal pressed in and you engage first gear you get a bad sound? That sounds like your clutch isn't fully disengaged and you need to raise your pedal.
What you you mean the flywheel moved a little? It rotated? That is fine. If you mean you had side to side motion on the flywheel that is very much not ok.
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