Chris, I did see your post on rangerovers.net, and your setup looks very similar to mine. Except that since I dont have ABS, I was able to put the MSD box where the ABS/Brake Boost pump sits on yours. I also used an MSD coil that was a direct replacement for the stock coil, and was able to mount that in the original location.
I am thinking that the MSD and the stock system look for the AC wave pulse to be opposite from each other to fire the coil. One maybe firing on the positive wave pulse and the other on the negative wave pulse, causing the timing difference.
It did however run at least as good as stock even with the phase difference and re-dropped distributor, but I knew it was not as efficient as it could be with the spark jumping the extra gap inside the cap necessary to fire the plug, also possibly causing long term damage to the cap and rotor.
In all, the MSD is a great unit and very reliable once set up. I may not have had to do anything to the distributor, and maybe it would still be running ok...? I would still recommend the install as a very viable replacement for the stock setup.
Vanman