close to the redline?

don't worry about it. Just drive it.
I've seen sierra 1.3's run out of tach numbers (I think that's past 8?) and whilst there is/was no point to rev one that hard, 6500-7000rpm once in a while won't kill it. Once it stops making useful power (around 7000 rpm, I think) either back off or pull the next gear.
I like the idea of a rev limiter though, bear in mind, however, that in an EFI car the rev limiter is a fuel cut but in your case it will be in ignition cut. This will lead to LOTS of bangs and pops as there will still be heaps of fuel going in but no spark to ignite it, so it will only ignite in the exhaust - very hard on the exhaust etc and I reckon would blow out mufflers just like the old school "key bangers" used to.
I don't know how "soft" the jaycar limiters are, but you really want something that pulses very quickly - effectively dropping individual cylinders quickly and randomly- so high revs are maintained rather than just cuts everything, sees a drop in revs then turns it all back on - this could lead to some nasty "stuttering" and a massive loss of torque that could see you stuck.
PS if you want to see the effect of an ignition cut, check out some of the more powerful Japanese drag cars. Here is an example- at around 11 seconds, you'll hear the car bogging and throwing flame - that's an ignition cut limiter at work.
http://www.youtube.com/watch?v=NPyY-cqbuc0
It wasn't exactly what I was looking for - I've got some old DVD's of supra's etc in Japan launching and the effect of the ignition cut is pretty extreme.
Theoretically, they should work very well and avoid the bwarp...bwarp...bwrap surging of a fuel cut, but nonetheless, there would bee some experimentation in setting one up.
Steve.
[quote="greg"] some say he is a man without happy dreams, or that he sees silver linings on clouds and wonders why they are not platinum... all we know, is he's called the stevie.[/quote]