Don't stress too much about getting the missing tooth in the right spot with a Megasquirt, you can adjust the cyl#1 angle/offset so the ECU knows exactly where #1 is in relation to the missing tooth. And yes you are right, crank triggers are without a doubt the BEST way to trigger the computer. Distributors are junk for primary EFI control, they're slow and they don't respond well to changes in engine speed because there's only 8 pulses per 720, where in your setup there's 72 pulses (well, 70) per 720 so the ECU knows what is happening every 10 degrees of rotation. I converted an old mallory small body distributor for cam sync for #1 home signal and to drive the oil pump. I'd get a luhn cam plug now if I had to do it again.
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'71 Holden HQ Monaro - 3850lbs race weight, 400c/i - 11.4 @ 120
'66 Pontiac GTO - 389, 4 speed street cruiser
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