Arlie,
I agree with you. Damper looks like it ws cut. for what reason, I cannot fathom. Depending on which groove the key was in, this could make your engine out of balance slightly. It is supposed to be on line with the flex plate balance.
Anyway, a new damper will solve the problem for sure. Tighten bolt to 100 pounds of the old foot!! Or as Iike to say "about a tight as you can get it without standing on the breaking bar". Easy on the engine stand, not so easy in the car.
Sometimes you need an assitant to jam the flex plate with an appropriate bar. Or back in Neil's day they had a strap wrench to grab the outside of the damper.
Rob