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A modulator just modulates. It doesn't know about PAL, NTSC, 60Hz, 50Hz etc. you need the right vision polarity (negative, most modulators will be OK here anyway), sound system (FM) and sound spacing (4.5MHz for the US system). Any modulator sold for use in the US should be fine.
If you put an NTSC composite signal into a modulator is will work OK with a monochrome set. Just as it always did when receiving colour signals on a mono set. One of the most important things about NTSC (and PAL, SECAM) was they were COMPATIBLE. THis meant that existing mono sets worked with the new colour signals while colour sets could also receive the old monochrome ones.
The only downside on a mono set was you would see some fine patterning in coloured parts of the picture. The subcarrier frequency was chosen to minimise this problem. PAL is rather better than NTSC in this respect.
As other have said, the Y part of an S-video feed (or the Y signal from a 3 wire YUV/YCbCr connection) is exactly a monochrome signal.
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