MY builder recommended the 1.35" bbl for my 338NM w/ Stiller TAC 338 .... Greg @ Southern Precision
Far as fluting, I decided to not do it. Less bbl material means a less stiff barrel. My 338 is a beast, prolly over 15 lbs.
Fluting MIGHT save you 6-9 oz of weight, but will give you a less stiff barrel. (or so some people convinced me was true)