This has been done for one of the motors... L4 I think. I forget who did it.
Ford has taken to mounting their TFI modules remotely. I don't see why you can't do it with GM modules. Even the remote mount TFI modules are having problems with heat in some cars. So don't just assume this will solve your GM... It's worth trying.
You don't need a case and you don't want a fan. LEave it in the open. There is plenty of air moving around the engine bay.
PC fans aren't made for outdoor use. It will eventually fail and the case will block natural air flow. You could easily burn up the module that way.
There is also an electrical catch to this... You MUST provide a ground between the module and the block. The module has TWO grounds.
The wire grounds the reference signal and isn't inteneded to carry full coil current.
Coil current is grounded to the block thru the module's mounting hardware. You will have to add a wire between the heatsink and block for this ground.
I don't know what kind of wire you need to extend the pickup coil leads. I would think you'd want at least twisted pair for that. You might want shielded wire. (two conductors plus shield.)
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RIP Crew of Columbia. 01-Feb-03