Ballast resistor-> 4 prong to 2 prong

In that case, mount the HEI unit to the fender.

That's mostly correct. If the fender is not a flat area, you need a heat sink for the HEI module. Try to mount it away from exhaust (V8). There's some articles around, I'd Google HEI, slant six etc

Just for the HEI / Mopar conversion, you actually don't need to mod the distributor AT ALL.