I'm wondering if you realize that a Blaster engine, especially one that's modified, is going to have more power than what you're working with?  Sounds like a lot of work but hey it's your time and money.

On the VAPE (Powerdynamo) ignition, if you buy direct it should be cheaper especially if you don't want/need the regulator/rectifier for lights.

A company in England, Rex, makes a CDI that fires off the stator for the 360/400 models.  I can't recommend them, some people have had good luck and others have had major issues with their products.  If you are unlucky, don't expect them to stand behind their products from what I've seen.  But if it works, it might be a good option.