Birdman,
It's like this...ahemmm.... The MSD distributor is a good one, bolt it on without worry. However, it's got the same components inside as the OEM distributor (made by Mitsubishi), there is no advantage to it. Look on the bottom, see the weephole (if it doesn't have one, you need to make one). That is one way liquids get inside, the other way is that nothing stops hot coolant or A/C refrigerant oil from working thru the seals. So, if your water pump or A/C compressor fails, the MSD Optispark is toast.
On the other hand, I noticed that you were worring about the MSD (not to worry), but were using a dual exhaust (seemed strange to me). Why? Dual exhausts are left over from back in the 50's (actually, dual exhaust can be traced back to the 1920's) when everyone thought twice pipes were really cool becuz it means a big engine and more power and "everyone knows that". It's not true, even GM knew that, but sold twice pipes anyway, becuz it gave them another option to charge more mulah. Your engine has a crankshaft fazed so that the engine sees a continous vacuum thru a common intake plenum. To use a true dual exhaust, the engine must use a 180 degree (flat) crankshaft, which effectively separates the common V8 into two 4 cylinder engines that happen to be in a "V" configuration. Along with this, the engine also must have two separate intakes, dual exhausts and two computers--one running each bank as a separate engine, or two carburetors or two fuel injection systems, etc. There are several cars using this configuration such as the Ferrari V8 and the BMW V12--it used two 6 cylinder engines joined together with a 180 crankshaft and was a nightmare to keep running properly....well, OK, maybe it wasn't a nightmare. Ever wondered why those Ferraris "wail" when accelerated...they use a 180 crankshaft. The advantage to a 180? More hp, faster engine acceleration and a lighter crankshaft. Also, exhaust system design is simplified.
When you use a true dual exhaust on a V8 powered car without a 180 crankshaft, there is a loss of low end torque and more than likely, if you used 2.5 inch pipe, a loss of top end as well. A 3.0 inch diameter pipe outflows two 2.5 inch pipes and a 2.34 inch dual exhaust is too large for the engine, even though the flow is better, unless it is putting out a hell of a lot of horsepower...even then, a larger than 3.0 inch single exhaust is still better.
With a true dual exhaust, your engine is missing torque which means loss of horsepower. Any modern V8 engine using a two plane or 90 degree cranshaft should use only a single exhaust system or dual exhaust pipes with a crossover pipe to restore lost low end torque and power throughout the rpm range. In short, it is simpler to use any of the ready made CAT back systems that use a single 3.0 inch diameter pipe.
Hope this explanation helps you.