The function of a condenser (capacitor) in a coil ignition circuit is to reduce the spark at the contact points as they open in the distributor and thus minimise burning and pitting of the points. If you don't have breaker points (such as with a Pertronix, which is what I have) there generally is no need for a condenser in the circuit.
I still have the condenser, but it's only mounted for show. The resistor in the circuit isn't used either; I use it only as a "tie point"; several wires that need to be connected all meet on one end. I don't have the other end connected to anything.
From the 123 information I've seen, they recommend the Bosch Red coil, but there is no condenser shown in their wiring diagram.
For the Pertronix I have, I took their advice and got the Flamethrower coil. Never had an issue. I have not taken a temperature reading of the coil however.