The Ford duraspark II cap and rotor can be done on the 304 and 266 engines, but I was told it won't work on the 345/392 engines due to the different design of the intake manifold. I don't have the larger engine to try the conversion.
The larger Ford cap mounted on the IH Holley distributor will hit the side of the thermostat housing of the 304, but about 10 minutes with the drum sander of your dremmel at the unused ear of the thermostat housing will eliminate the problem. It is not necessary to remove the thermostat housing from the engine. It will be easier to remove the dist from the engine, but cover the hole so the grit from the sanding doesn't fall into the engine. With the dist out of the engine, mount the cap on the dist housing and check clearance between the cap and vacuum advance can. Depending on how the vacuum can fits on the housing. I had to grind off about 1/32" from the cap. Retaining the plastic dust spacer that goes between the cap and distributor body makes the larger cap a pretty tight fit. Use a file to eliminate the 'lip' around the edge except just enough to prevent the piece from dropping down into the dist. Can also remove the inside half of the raised sections at the bottom of the cap so the lip of the dust spacer will fit inside the raised sections around the base of the cap. When you look at it, you will see the problem. Without the plastic spacer, the cap fits fine.
I used the 'bosch' brand 8mm plug wires #09758 from a 1979 Scout II that came with the prestolite distributor. All the wires are pre-cut to the correct length including the #7 extended length. The wire ends for the cap were (in 2008) all the 90* style. There was the additional 8mm wire for coil to cap, also with the 90* connector for the cap. Standard male connector for the coil.
Image #294 = the Ford cap on the IH Holley dist as it is today.
Image #232 = the 'tight' area between the cap and vac can.
Image #234 = the area removed from the thermostat housing.
Image #241 = Ford cap before adding wires and t stat mod.
Image #251 = t stat housing and outlet after blending the removed 'ear' and removing the 'hump' off the water outlet. Was not necessary to convert to the Ford cap but was done just to be different.