Bob...I'd grind the head. That way you'll always have clearance no matter how much you have to adjust the distributor. Should be plenty of meat to grind away to get enough room...doesn't need much.
It's been a while, but I think I had to grind clearance on my Indy valve cover for the MSD billet distributor on my SR headed 440.
CHIP
'70 hemicuda, 575" Hemi, 727, Dana 60
'69 road runner, 440-6, 18 spline 4 speed, Dana 60
'71 Demon, 340, low gear 904, 8.75
'73 Chrysler New Yorker, 440, 727, 8.75
'90 Chevy 454SS Silverado, 476" BBC, TH400, 14 bolt
'06 GMC 2500HD LBZ Duramax
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