Dan:
That hole is for lining up the crankshaft timing mark. There should be a little pointer mark on the aluminum case inside that hole (looking toward the engine). Inside of that case will be your flywheel/clutch assembly, and on the outside would be an alignment mark, that you would align to the pointer mark inside of that hole. It is used for timing timing camshaft, injection pump, or when changing the timing belt. If you look closely, you will see that inside the hole, there are threads. There is supposed to be a plastic threading plug to keep crap from getting in there and possibly contaminating your clutch. I would suggest going to the wreckers and getting one.
I hope that helps, if I missed anything, I am sure someone will add to this.