Lockup to non-lockup question(s)

You may not be able to use a LU trans in your car. The pilot register changed size between 1967 and 1968. 1967 and down had the smaller crank pocket. All lockup 904's had the converter with the large pilot, and it will not fit the crank. You cannot use the early converter in the LU trans. You need to measure the crank pocket to be sure. If you have the large crank pocket, just use the LU trans, and the LU converter. No other special parts are required, unless the LU trans is a much later trans that has a single wire switch connector at the rear of the main case, on the driver side (not the neutral safety/backup). Then the trans needs a switched 12 v signal the lock and unlock the converter.
He has a 340