The simplest way to get rid of the points is to install a Pertronix unit inside your existing distributor, but the only benefit to doing that is getting rid of the points. There will be no real performance improvement because you still have the same coil, cap, wires, etc. I don't know if a DS2 distributor will fit or not.
Joe
The Pertronix 91266 (Ignitor 2) and 1266 (Ignitor) will fit the distributor if the shaft is circular with a flat "notch" to hold on the rotor. There is also a compatible model (1261) for the hollow shaft distributors.
I was reading somewhere that a 240/300 dizzy will work in a 262. As the 262 is just a bored & stroked version of the 223, its possible then that you could use the duraspark system on the 223. Unfortunately as I don't have either a 223 or 262 I can't test this. If this info is correct, the only issue I could see is the dizzy gear. 262/240/300s are a gear drive while (most) 223s are a chain drive. You may have to switch to a different dizzy gear as the dizzy will be turning in the other direction. Just a thought.
Edwin
i have a 240/300 dizzy in my 262 it is on the engine stand & has not been started. the 300 uses a5/16 oil pump drive 1964& later 223-262 also use 5/16 drive earler 223-262 use a 1/4 drive i took the gear off the 262 dizzy and put it on the 300 I have turn the engine over by hand it looks ok if you get a 223&300 dizzy the outside case look the same both turn the same the shaft in pre 64 dizzy has a smaller shaft to put the gear from this dizzy on a 300 you have the hole reamed to fit a 300 shaft & change the oil punp or have a drive shaft made to have 1/4 one end & 5/16 on the other if you do this get the box coil & wires with the dizzy
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