I've done this swap on 2 '78 750's. Just use the same set up as on the '76 and earlier bikes. But remember- your stock '78 should have a smaller rear wheel. Therefore more revolutions for any given speed. Once all that was done, I opted to get a pre'77 wheel anyway, because that size is also easier and cheaper to find.
And for some reason, I had to go two extra links on the chain, so order it accordingly. Additionally, the rear wheel is spaced slightly differently because of the wider original chain, I imagine. So to get the 530 chain straight, you'll need to fashion a spacer out of a larger washer but I can't remember which side of the wheel the spacer goes onto. It'll be painfully obvious once the new chain is installed.
Do it up and document your results along the way for the other 6 surviving K8's out there, and put it in the FAQ's also, a side benefit is you save a few pounds (the American ones, not the British type) just on the weight difference between the 630 chain/sprockets and 530's.
Later,
Chris in Boston