Kohler flywheel grinds top of starter gear when engine runs.

[stingray2897]

I have a Craftsman Garden Tractor with a 26 hp Kohler SV735 engine. The engine starts and the starter gear retracts, but the flywheel rubs the top of it while the engine runs and makes a loud squealing noise. I'm not sure if the cause is that the gear is not retracting enough or if the flywheel is wobbling on the cranshaft. The fan on the flywheel looks like it wobbles little, but I thought that it's just because it's plastic and might be slightly missshapen from heat (tractor is 8 years old). The flywheel looks like it spins smoothly though and does not wobble, but i's hard to tell. Any help would be greatly appreciated.