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My guess would be maybe the coil overheating and not functioning properly, especially if your heater hoses are lying on top of it.

HEI is an electronic ignition system where everything is (mostly) contained in the distributor and cap. Works well for a GM invention.

You talking about the fender mounted indicators? Or the ones in the grill? The grill signals ground to the sheetmetal in front of the radiator. If you're not sure, follow the wires coming out of the back of the signal.

What year?

I'm interested. Should be neat when its finished. Let us know if it works well, I might pick one up myself.