There is no provision on the Getrag for a pilot bearing and so they are not used (put close to 40K on 2 getrags behing my Archie SBC kit).
You can run w/o the insulation (I have done it for years), but the passenger compartment temp will increase and you will feel the center console get warm. I perfer to add additional insulation under the carpet on the inside vs. it being in the engine bay.
Heat shields, ceramic coating or exhaust wrap can all be used to help reduce engine bay (and passenger comparment) temps.
[This message has been edited by fieroguru (edited 06-18-2010).]