I have fitted the mk2 servo and m/cylinder and have no problems, looked into the Peugeot dist cap and found as you have, the leads are not compatible. The Audi 16v engine uses a cap with the leads coming out at 90 deg, but is screwed on so you have to fit the distributor as well. Worth looking around the scrappers and getting the dist, cap and ht leads of a 16v Audi for a proper fix.
Steve.