Chumps,
I can't advise on the emissions as I bypassed them by adapting my throttle body to match a Euro version so the vacuum can be connected directly from throttle body to the 123 as would be done on a Euro model.
However, I wanted to advise you on how the 123 is wired on my 1971 USA model, in case it helps.
The wire from the ignition key switch is connected directly to the coil positive. It does not go to the transistorized ignition nor does it go through the resistor --- it goes directly to the coil. Some would argue that the red coil requires a 1.8 resistor, but if you read the fine print, it only requires this if you are not using an electronic ignition. I may be risking the coil by not having the resistor but for me, the 123 worked better wiring it directly.
In addition, since mine is a late 280 car, it had the additional wire running from the starter and going to the transistorized ignition. I have again wired this directly to the positive coil by-passing the transistorized ignition. This wire was essential to having the car start easily. Without this wire from the starter connected to the coil, the car would start, but took a lot of cranking. With it connected, the car starts right away.
So, to recap, my coil positive has three wires on it -- one from ignition key switch, one from the starter and one from the 123. The coil negative only has the black wire from the 123. All other wires from transistorized ignition are disconnected.
See the attached wiring diagram from the tech manual as it shows the original wiring for a transistorized ignition and will help explain what I have described.
Best of luck,