60 Valiant MSD 12v source

Am I correct in using the 2 Blue leads (alt/ign sw) along with the brown to provide 12v switched to the box
Yes. Piggy back onto either terminal; Or disconnect the ignition wire at the coil and connect to that wire's ring terminal. The current drawn by the box for the on switch signal is so small it won't notice the ballast resistor is even there.
and + coil?
No!

The original wires to the coil must be removed. The MSD will supply a burst of electrical energy to the coil.