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Internally balanced means that the CRANK is balanced and you will used perfectly (Neutral) balanced flywheel/flexplate and harmonic balancer.
Exteranlly balanced means that the CRANK is not perfectly balanced, but is set up for a specific (with counterweight) flywheel/flexplate and harmonic balancer.
For instance:
Your stock 350 is internally balanced.
A 400 smallblock is externally balanced.
Most 383s are built off a 400 crank in a 350 block... so they need the externally balanced flexplate/flywheel and harmonic balancer. (NOT the old ones off the 350)
AND the guy who assures you over an over that your new 383 is internally balanced CAN be wrong. You'll put your 350 stuff on and it will shaked like a whipped mule. You'll then pony up the cash for the external stuff and it will purrrrr like a kitten. Ask me how I know!!!!
Don't quote me on this but i think the 454 and the 396 are external and the 427 is internal but some are and some aren't that I do know. The 454 is one of the external ones not sure on others.