Paul,
I vote for number 3. I am going to use is the smaller MSD style distributor that you run a box with. Here is an example. This is a knockoff brand. About a $150 cheaper than a real MSD. I have had one in my Caprice for the last 10 years with no issues. I am about to move the whole ignition from the Caprice over to the 64'
http://www.ebay.com/itm/Assault-Raci...item5afda99edf
You will need a box and coil to run it. This is a smaller cap distributor so it will have more room near the firewall.
http://www.ebay.com/itm/MSD-Ignition...43380826&rt=nc