Aaah. Intiutively, it seems like a bad idea to be jamming stuff between the crank and block. Dave is correct that the best way is to lock the crank in place with the OEM tool, or one that does it similarly. In my case I found a big piece of 1/2" steel plate and drilled holes in one so that it could be bolted to the crank nose and rest against the chassis. Without going too far into math or anything, the closer you can get the locking implement to the bolt you are yanking on, the less loading you will place on the bearings ALSO assuming that the angle of the breaker bar you are using is very close to the angle of the locking bar. Doing it this way puts no longitudinal torque on the crank, whereas stuffing a block of wood up there puts all of it on the crank. If you are working the breaker bar at a similar angle to the locking tool on the crank nose, you will also minimize the radial forces developed on the bearings.
As far as installing the harmonic balancer goes, I have no idea why one would need to hammer it on. If you do, then something is either dirty or maybe you need to hit the woodruff key's edges with a file, clean it all and put a little clean oil on it. The crank bolt will push it all together anyway.