A simpler solution might be to just install a Pertronix system into your existing distributor. That's what I did, and it works great. I got mine from LaJolla Independent (http://www.bimmerdoc.com/parts.php).
You could get a transistorized distributer out of a late model 528i (from 79 to 81) along with the control module (and some wiring). This would be a nice factory upgrade for an older car.
The last blurb "Points Style Distributors" discusses a couple different aftermarket add-ons (Aldon, Europa, Demon) that only require modifying the distributor.
I think this is what Cornice Jumper is referring to as the ignition upgrade for modified engines. Came with the car so I can't speak to any improvement as a result but certainly never any problems.
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