Chrysler Repair: flywheel damage, 2000 chrysler lhs, chrysler lhs

Question
I have a 2000 Chrysler LHS with a 3.5l engine.  I brought it into a dealership to have a cold start issue diagnosed and repaired. I had narrowed it down to either fuel pump or starter. The tech agreed that either one was the probable cause and then diagnosed it as a starter issue.

When I picked the vehicle up, they started asking me about a noise and was it there before.  I told them that it wasn't. The service manager then proceeded to tell me it was there when I brought it in.  An obvious lie and an attempt to cover the damage one of his techs had done.

My question is can an improperly installed starter cause damage to the flywheel or some component of it?

The noise sounds like a prop plane getting ready for take off, it is very loud and an obvious major issue with the motor.  It is not something I would ever drive with and was most assuredly not there when I brought it in. Three techs and the service manager all acted like they had no clue what the sound could be, they said to 'leave it with them'.  

They now say the flywheel bolt is shifted and that is where the damage is. Could you even install a starter if there is an obvious flywheel problem?

Answer
Of course the starter motor drives the teeth on the flywheel/flexplate. Of course you can install a starter when there is damage to the wheel/plate because the starter drive gear doesn't try to mesh with the teeth of the plate until you activate it (this is a moveable rotating gear on the shaft of the starter motor called a "bendix unit"). If the starter were put in off-angle from in-line with the axis of the engine then it could damage the flex plate teeth and even the plate. I don't know what "bolt shift" means, but clearly you should tell them that the starter motor never made that sound until you brought it to them.
Were you there when any one in the shop first tried to start the engine before they touched the starter motor, and if so was there any such noise at that time? If you and someone else in the shop both heard the starter then you have a 'witness' that the sound was not there. He could lie and say it made that noise but it would have been obvious to both of you. So I would be inclined to tell them they did the damage, they should fix it, or you are going to small claims court. If any other family member is familiar with the sound of the engine recently when started they could testify too that there was no such noise before the shop changed out the starter. The noise could be due to a faulty starter motor that is not retracting the bendix gear when the engine starts and that causes the starter motor to spin at very high rpm of course and that would sound like what you describe. So they either installed a faulty starter or installed it improperly and damaged either the starter or the teeth on the flex plate or even bent the flex plate (what they now call 'bolt shift' perhaps). Have they tried to install another starter? If so and it didn't correct the problem then the flex plate or its teeth have been damaged in this repair job. Be assertive and then let me know what happens.
Roland
PS Sorry for the delay but I just found your question in the pool to which Kevin referred it.