B737 STRIKES SEVERAL SEAGULLS ON DEPARTURE FROM SJC. CREW ELECTS TO RETURN AFTER ENGINE VIBRATIONS ARE NOTED.

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PASSING THROUGH ABOUT 150 FT JUST PRIOR TO ENTERING THE CLOUD DECK; WE ENCOUNTERED A FLOCK OF ABOUT 1/2 DOZEN SEAGULLS. THE BIRDS CAME AT THE ACFT FROM THE L SIDE AND ATTEMPTED TO SCATTER AROUND US. WE HEARD SEVERAL 'THUMPS;' FOLLOWED SHORTLY AFTER BY A STRONG SMELL OF 'ROASTED SEAGULL.' I LOOKED AT THE ENG INST AND NOTICED THAT #1 VIBRATION LEVEL WAS AT LEVEL 3 WHILE #2 WAS WELL BELOW LEVEL 1. I ADVISED THE FO THAT I BELIEVED WE HAD EXPERIENCED A BIRD STRIKE AND ALSO INGESTED A BIRD DOWN #1 ENG. THE PURSER THEN CALLED ME TO ADVISE ME OF THE STRONG BURNT ODOR. I ADVISED HIM THAT WE WERE AWARE AND HAD INGESTED A BIRD ON #1; TO REMAIN SEATED; THAT WE WOULD BE RETURNING TO LAND AT SJC; AND THAT I WOULD MAKE AN ANNOUNCEMENT. WE CONTINUED TO CLB AT THE PREVIOUSLY SET REDUCED PWR TKOF AS ALL OTHER ENG INDICATIONS APPEARED NORMAL. THE TWR SWITCHED US OVER TO NORCAL AND WE CLBED TO OUR PRE-ASSIGNED DEP ALT OF 5000 FT. I DIRECTED THE FO TO TURN OFF BOTH PACKS DUE TO THE SMELL; NOTING THAT WE WOULD ONLY CLB TO 5000 FT. I ADVISED NORCAL WE HAD AN ENG BIRD INGESTION AND REQUESTED LEVEL AT 5000 FT AND RETURN TO SJC FOR LNDG AND THAT WE WERE NOT DECLARING AN EMER AT THIS TIME. WE FLEW AN ATC DIRECTED DOWNWIND R-HAND PATTERN AND THEN THE ILS TO RWY 30L. WE LANDED WITHOUT INCIDENT. THE TWR ADVISED US THAT THEIR OPS VEHICLE WAS PICKING UP PARTS OF SEAGULLS OFF THE RWY AS WELL AS METAL ACFT PARTS. AFTER SHUTDOWN AT THE GATE; WE OBSERVED THE ENG DAMAGE AND BIRD FEATHERS IN THE #1 INTAKE. SUPPLEMENTAL INFO FROM ACN 725084: ON TKOF FROM SJC JUST AFTER GEAR RETRACTION WE ENCOUNTERED A FLOCK OF SEAGULLS. WE WERE APPROX 100-150 FT AGL AND STILL OVER THE RWY. THE GULLS WERE JUST AT THE BASE OF THE SCATTERED CLOUD DECK; AND NUMBERED 6-8. AS WE PASSED THROUGH THEM WE HEARD AND FELT A THUD. SHORTLY AFTER THAT WE STARTED TO SMELL A BURNING ODOR. AS WE CONTINUED OUR CLB TO A SAFE ALT; THE FLT ATTENDANTS CHIMED US TO TELL US OF THE SAME SMELL. VIBRATION INDICATIONS ON THE #1 ENG SHOWED AROUND 3; AND WERE ABOUT TWICE THAT OF THE #2 ENG. WE LEVELED OFF AT 5000 FT AND AGREED THAT WE HAD EXPERIENCED A BIRD STRIKE. AS WE REDUCED THAT PWR SETTING; THE VIBRATIONS DECREASED AND THE REST OF THE ENG INDICATIONS APPEARED NORMAL. WE NOTIFIED DEP CTL AT THAT TIME THAT WE HAD EXPERIENCED A BIRD STRIKE AND THAT WE WOULD NEED TO RETURN TO SJC FOR AN IMMEDIATE LNDG. WE ALSO ELECTED TO SHUT DOWN THE PACKS SINCE WE WERE NEVER GOING TO EXCEED 5000 FT AND THE SMELL INDICATED THAT ONE OR BOTH PACKS MAY HAVE BIRD FOD. AT THAT POINT WE WERE ON DOWNWIND FOR SJC RWY 30L. WE BRIEFED THE ILS AND FLEW AN UNEVENTFUL APCH AND LNDG TO THAT RWY. AFTER WE LANDED; WE SHUT DOWN THE #1 ENG AFTER WE CLRED THE RWY. BY THAT TIME AN SJC OPS VEHICLE HAD RECOVERED SEAGULL REMAINS AS WELL AS SOME METALLIC ENG PARTS. A POSTFLT INSPECTION REVEALED DAMAGED FAN BLADES AND DAMAGE TO THE BYPASS SECTION OF THE L ENG.