I would personally get a set of used GT-40 heads and get a nice cam in there. Aftermarket Trick Flow upper and lower intake. You will notice a large difference. Then after that, build your suspension a little see how the car bites with that setup, it isn't too expensive for that stuff at all. You really need to figure out what you want to do with the car long term. If you want to utilize the stock shortblock with a nice little amount of miles already on it, then I would suggest the plan I just told you. If you want to have a fully built track/street freak. Then you need to save for a shortblock that is ready for high compression. In the meantime just keep it simple, you will love the 260 rwhp with a nice suspension. If you have any more questions or wanna more in detail about a particular setup, then ask away.
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"Gripping the wheel his knuckles went white with desire, the wheels of his mustang exploding on the highway like a slug from a .45. True death. 400 horsepower of maximum performance piercing the night, this is Black Sunshine"