air tubes. i just stuck a cork in the drivers side hose, and on the passenger side, ran the hose from teh exaust to the tube going to the cat. eventually, i replaced the exaust manifolds with headers.
the converter is controlled by the computer and locks it up at 45 mph. the sensor for this is in the dash somewhere and is not effected by removing the stock distributor or anything else.
the 81 uses an hei distributor that has two wires connected. one is the wire for firing the plugs, the other is for the tach. your new distributor should connect right up, mine did, and the tach works fine.