Pretty much all Honda D series parts are interchangeable. Distributor itself does work, but it deponds upon what ECU/OBD you're running. Grips are different for different OBDs. Yes, you can convert them, but I dont think conversion harness is avaliable, so you're better off getting the right dizzy for 2.5K rupees.
Local distributor is OBD2b, so it'd hook up with OBD2b wiring + P2J-J11 ECU for you 3 stage vtec motor. Most 3 stage motor come with OBD2a ECU; P2J-J62 etc and for that you have to get the wiring converted, or changed altogether, for good measure.
First step is to identify your ECU. Are you running local ECU or the one that came with the motor? Can you post the code here?