A flywheel won't really increase or decrease the engine HP, as I understand it. What it does is change the "feel" of the performance. With a lighter flywheel, the engine will rev up more quickly, but will also slow down much more easily say going uphill then it did before. Also, you'll notice less of a "punch" when you shift.
Leastwise, this is how I understand it. Personally, I'd prefer a lighter flywheel in my clutch, it allows for faster engine response then a heavy one.. But, with a heavy one you can rev a bit when shifting and get a larger jump when you drop it in gear.
Anyone out there is welcome to correct me. I havn't rebuilt my clutch yet.