I dont think that the MSD box would be overkill...it would definitely be better than just the HEI...the MSD will create more sparks per revolution resulting in a better burn and more power...i even notive the extra power going from stock coil to MSD high perf. coil...get the MSD cause its good for u..only thing thats kept me from it is price right now...The HEI alone does not give all that much more spark...just a more reliable one...
anyways...another good method of putting on oil pan gascets is to use really thin hobby wire to hold it in place...its thin enough not to be a problem when mounting it...but the sealant to hold it in place is a really good idea too...
larger valves isnt necessary to do since u can buy a 78-80 head used with larger valves...but the intake is usually integral so mods to the head would need to be done...
hope u fix the leak...my engine leaks like a siv...but its my fauld for not using proper gaskets and only gasket sealer...hehe..oops..soon to be remidied though...