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That MSD red cover looks cool !! I say go for it....just jam a distributor gear in there, a litlle duct tape and BLAM ! Moisture/coolant problem solved....you best run to the patent office quick....
did it already...used an opti "reluctor" disc and pickup, adapted to an HEI distrib upper end...the opti disc is only abt 3" o.d. so it fits ez above the 5" o.d. HEI upper casting...a "delteq" system + northstar coilpac was used for secondary output to the spark plugs to alleviate probs endemic to the opti cap/rotor (huge size, internal arcing, etc.)
intially ran on an early lt1 that had intake mod to accept a rear mounted dizzy, now being used on a bbc with late 90's truck mpfi, 94 9c1 ecm (sequential injection)