Yesiree bob. It will work fine.
The XD 1/2 Alloy Head and XE Alloy Head II ran a Bosch~ Motorcraft distributor called a Duraspark in the factory shop manual. The XE 4.1 auto advance curve is the best with LPG. That's becasue it has an agressive climb, and then is held back at about 34 to 36 degrees if you time it at 9 degrees before TDC at idle. Just be sure to measure the diameter of the hole with some of them plastic calipers you get at the hardware store. It should be 525 thou or 495 thou (13.35 mm or 12.57 mm). There was some kind of change around the iron X-flow, but I'm not certain about when it was.
If the distributor isn't siting neatly in the hole, then you'll have to sleave it with a made up sleave, or have it resized by machining. Earlier X-flows didn't have a lot of room around the boss for the bigger TFI unit used in the XF Falcons, so trial fit it.
The little hardened cog centres the whole distributor anyway, but to make it last, make certain if fits snugly.
Only other thing is that there are some space limitations. Some of the aftermarket Torco/Cain/Lynx/Hall/ Redline/Ultraflow manifolds tend to obstruct the earlier non electronic distributors.
Last point. It used to be possible to do an electronic conversion to any early Bosch~Motorcraft item is very easy to convert. My XD iron head had an aftermarket Bosch conversion to its Bosch distributor. They may still be avaliable as a spare part if you Ebay the part number. I think I had it on the Bosch carton. I'll check it out.
The XF ran a TFI (Thin Film Ignition) system, It's had two types of control unit. Each was calibrated for the trans/engine/air con spec, if the engine was a leaded or unleaded spec. It's a better to do an MSD LPG spark advance conversion on them as the stock control units were a little bit hard to work out.
