ccentralm, my "77 KZ650-B1 was manufactured with Points as the ignition control devices. I added the Dyna S (DS2-2) Electronic ignition control devices this last summer along with two matching green Dyna 3 Ohm coils (DC1-1). Oh, what a difference.
But this was only half of the answer. Three summers ago I added the WG Coil Repowering modification. I believe that the associated improvement in starting, running, tune-abilty and reliability are the only reasons I still have this bike today. I cannot recommend this modification to strongly... after 30 years your bike needs this! You will have noticed that it is shown in my diagram above.
I prefer not to give advice on equipment I don't have but here goes anyways... I would speculate that you should remove all of your original electronic ignition system, pickup heads, ignitor box and all. Since the Dyna S has integrated both functions into the pickup heads the installation should be much simpler and cleaner to.
You may have noticed that I installed a new and separate 5 Amp fuse circuit just for the Dyna coils and pickup heads. I did this for the purpose of easy fault isolation and troubleshooting. You may want to do the same since the incremental cost is so low compared to the Dyna parts you have already purchased and certainly low compared to the befits, IMHO.
Now, I will need to let wiser and more experienced KZ750 owners confirm or correct my advice. Thanks in advance.
Best of success.
PS
Still looking forward to your year, model and location.
Bill