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That system does in fact work, however
theres a serious problem with it.
The HEI module is designed to fire on the positive side of a a/c sine wave form, this method fires the module on the negative side of the waveform. Although it does make the coil fire the ignition, the rotor phasing timing is off quite a bit.
I built some of these for some corvair friends a few years back and they will run, but the KV demand on the system ( due to the incorrect rotor phase) is pretty hard on ignition parts especially the cap and rotor.
Believe me if this worked perfect it would be on all our ignitions!!