British Citizen by Descent

My father was born in Scotland (yr. 1927) he came to Canada as a young man and had children. I was born in 1978. I want to acquire British Citizenship. My research has led me to the UK Border Agency site where I found a form for Application to become British Citizen by Descent of the Mother...but nothing for Descent of the Father. Any help would be much appreciated!

You merely need to fill in form C1. You ARE a UK citizen, as long as your father was married to your mother. The other forms are for those needing other steps to get citizenship. You don't need those.

i know I am not able to get citizen ship as the daugher of my british mother, I do qualify for a right to Abode, with gives me all the same rights as a citizen expect the ability to vote.

You can either get right of abode, or you can apply for 'registration' and then citizenship quickly thereafter. The rules for children of UK mothers havs changed in the past 2 years.

Do I understand correctly that if my father's ancestors are traced back to Scotland (1700), then I can move to Scotland on an Ancestral Visa? Is that correct?

Its only your grandparents that matter, no further back is needed.