The way to use the FIX-IT flywheel is a bit kludgy, I just manually center the magnet ring and glue it to the flywheel. However, that's only if it's a real PITA to get the motor out (as it is in this case). If it's easy to get the motor out, I glue the magnet ring to the old flywheel and press the flywheel back on. I only use the FIX-IT flywheel if I don't feel like attacking the puzzle trucks.
It's a total mystery what Lionel was thinking when they specified the measurements of the FIX-IT flywheel!