There are also some good threads about this in the archives, try a search and you'll uncover alot about this.
As for your questions, there will likely be a mileage gain, but a pretty small gain compared to a well-tuned carb. Overdrive will give a much bigger mileage gain than EFI.
You will gain throttle response and improved cold starting/running behavior. The engine will also last longer because of a more precise air/fuel ratio (if the EFI is properly tuned) You can gain some power depending on how the EFI is set up. The main power gain would be because you could run a throttle body larger than the 800cfm that the carb provides without losing throttle response. That wouldn't be the factory system though, something like a Holley 4bbl TB with 2000cfm would be something that could be bolted on and used with a megasquirt system.
The factory EFI might or might not work with an aftermarket cam. With later EFI systems it depends on how much vacuum the cam produces. Dunno about the early Caddy system. Basically a large cam makes the stock computer think that the engine is under more load than it really is and you end up running really rich all the time. Very bad.
Personally, even if you could find the stock computer, I'd still run megasquirt because it is easily tuneable if your engine is not stock. It also uses MUCH newer sensors that are readily available and cheap to buy.