"You don't need to go to a "special" store to buy the distilled water."
You don't need to go to any store. Electric home water distillers are now reasonably priced and will pay for themselves over time, depending on your usage. It costs me about 50 cents per gallon and takes about 4 hours to distill one gallon. My tap water just leaves a little calcium residue, but depending on your water source, you might be shocked and appalled by the residue from your tap water.
"how safe is it to use STP universal antifreeze?"
It's only rated for two years of service whereas "long life" coolants are typically rated for 5 years.