Karl,
I work at MSD and would be glad to try and help you sort your problem out. You can send me an e-mail jwagner@msdperformance.com
If you are using the TACH post on the HEI, it is not a conditioned square wave. It is just a tap off of the ignition primary side of the coil. It will be a very ugly signal. Some tachometers were built to be able to use that signal with the circuitry internal of the tachometer. Feeding that signal into another device that is expecting a 5 or 12 volt square wave signal will not be happy, as you have found.
The TACH adapter is a possible option, but they can vary quite a bit and may or may not work for certain applications.
The GMR pickup also is hit and miss. It works great on some ignition system, not so much on others. It is a fucntion of the amount of current and duration that determines if it works or not.
Send me an email and we'll figure out the best way for you to get a good RPM signal.
JW