Ok Hunter heres the deal. You have an AOD-E transmission in your car. Heres what I would do in your case. Ready???
First off start with a good exhuast. These are the worst things in a 96-97 mustang. Id get an H-pipe and Flowmaster mufflers.
2nd---Get a 3.73 gear and Precision Industries 3000rpm torque converter and a good shift kit. The converter will help to get your car out the hole better and the shift kit will apply the power to the ground better.
3rd---Get a Vortech supercharger (8psi). Later on down the road you can then install an aftercooler or intercooler for more power. And ofcourse you can always run a lil more boost too.
4th---99 and up GT heads. Theyll make a BIG difference with the supercharger because of there tumble port design and better flow capabilities.
5th---Get yourself some Nitto drag radials. Its the best street/strip tire you can buy.
Hope this helps and you get your car running good. I think youll be happy with this combination. Good luck!!!
Thuggin Tony