Yes, all you really need to keep the engine running is a vacuum line to the brake booster, a line to the distributor, and if your transmission needs it a vacuum line to the vacuum modulator (I don't personally know if the AOD uses one).
The mid-1980's were a horrible time for carb'ed engines, I refused to work on them because of the Medusa head staring back at you when you opened the hood that would turn you to stone, they worked great out of the factory but as time went by the vacuum hoses dried up, the various vacuum sensors and switches went bad, and trying to troubleshoot them was just a nightmare.
Regarding the Duraspark II ignition...
It works like most basic electronic ignition systems do, there is a pickup coil inside the distributor that creates a very weak pulse signal that is sent to the so called "Brain Box", which then amplifies the signal into a very large pulse signal that then fires the NEG side of the ignition coil which then creates the high voltage that ends up going to your spark plugs.
As far as replacing it goes there is a article that tells you how to do this at:
http://www.fordmuscle.com/archives/2...park/index.php