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I appreciate your advice - any Shelby specialist willing to chime in.
Should not be necessary. The GT500KR was a straight-up CobraJet engine. Of course, it might need all sorts of items to bring it back to stock. Mansfield Mustang is the best single-source for such parts. Oh, and send the distributor to Dan at the Mustang Barn for calibration. Pretty good bet it is way off.
 

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Also I am thinking about replacing the original points distributor with an electronic ignition distributor that looks original - Any suggestions?? I also want to replace the plug wires and spark plugs. Not sure how you accomplish this? it is crazy tight especially on the drivers side - how are you guys doing this?
a) Properly set up, a point distributor will work as well as any electronic. In daily use, points will gradually go out of adjustment. Will you be driving it to work?
My '55 still has points. I have not adjusted them since about 2002. Not a problem.

b) Plug wires are tricky, but doable. The plugs are the hard part, requiring exotic tools. Back in the day, a lot of guys would lift the motor off the mount by pulling the horizontal through-bolt. Some would just skip it. You may have some of the latter going on.
 

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II have been looking at the engine bay and it looks impossible to change the plugs and wires without removing stuff and lifting the engine. Did you jack the engine from underneath? or lift from the top side? Jack points or lifting points. Do you remove any of the transmission bolts or crossmember?
Sometimes, especially if the Thermactor injector tubes are still in stalled, lifting the engine is the only way.

Typically a padded jack plate under the oil pan. Remove one horizontal bolt. Lift that side of the engine. Repeat on the other side.
 
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