Option 2.
Check on
http://car-part.com/ and find an electronic ignition module and matching distributor from a '80-'82 Luv, Imark, or Pup with a G180 or a G200 engine.
Do the simple 2 wire conversion shown in the complete instructions with pictures that is in the info section on this site's front page.
http://www.luvtruck.com/pdf/LUVignitswap.pdf
Add an Accel or a Pertronix higher output coil.
Either option will bump up your spark a bunch and won't keep you from passing smog. The old points-type ignition just isn't that great. It tends to fade a bit at higher rpm's.
BTW..while you are at it...you might as well switch your stock 35 amp alternator for a 50 amp one. Just have the guy at the parts counter look up the one for your truck that comes with air conditioning, (they are both the same price), then run a heavier guage wire from your alternator plug to your battery, and throw in a couple of 50 amp blade fuses where your fusable links that connect that wire to the battery are.