pertronix is the way to go, but if your distributor shaft is sloppy, it may create new problems, see if you can get the slop out of the shaft before you add to the issue. Is it in the shaft to housing fit? Or is it in the upper shaft to lower? Remember you can use a distributor for a 3.0L/2.5L 120/130/140 as a parts distributor if you can't find a 3.7L. The electronic ignition will help with the slop because there's no side load from the points, but it could lead to erratic timing if the there is enough play.
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