First, I recommend removing the Air Intake Silencer which is located in the front passenger side fenderwell, right behind the air filter.  Ford put it there to quiet down the engine. But in doing so, they choked up the flow of air going into the intake, thus losing about 3-5 hp.

Second, I would replace the air filter with a K&N filter.  These filters are not very exspensive (about $30-$40), and they last for the life of your car.  All you have to do is clean it and re-oil it every 50,000-60,000 miles or so.  This will give you another 2-3hp.

Third, I would buy a new exhaust system.  This will not only make your Mustang sound 100% better, but it will give you a great increase in power.  Most manufacturers claim an increase of 10-20 horsepower.  Go with a 2 1/2 inch madrel bent exhaust system.  I only recommend a 2 3/4 inch to 3 inch exhaust for mustangs producing at least 425 to 450 horsepower or more.  Bigger is not always better!  Most good exhaust systems in the market today cost between $225 and $300.  I recommend Flowmaster.

Fourth, I would install a new ring and pinion (rear gears).  Doing so will not be cheap, but it is definately the best "bang for your buck"!  The ring and pinion will cost about $200, and the labor to install it (always have a professional do the installation) will cost anywhere from $150-$300, depending on the shop.  For 5-speed 5.0's, I recommend 3:55's.  This ratio is good because it gives you a good increase in low-end acceleration, but does not kill your gas mileage.  For automatic 5.0's, 3:73 gears will be best.

Fifth, I recommend installing some new cylinder heads.  This will give you the highest boost in power except for adding a supercharger.  The cylinder heads I highly recommend are "Twisted Wedge" heads from Trick Flow.  The special thing about these heads are that they have patented combustion chambers that allow the use of larger intake and exhaust valves to build upper rpm horsepower without sacrificing low-end torque.  You can get these heads for about $1000.00-$1300.00.  They have been tested on a 5.0 liter Cobra motor and they added 78 horsepower out of the box.

Last, but definately not least, I recommend adding a supercharger.  The power gains you can get with a blower are unbelievable!  With the 5.0 liter motor, I recommend not exceeding 9 psi of boost without the use of an intercooler.  There are many good supercharger companys out there right now including:  ATI, Vortech, Powerdyne, and Paxton, just to name a few.  Read as much as you can before buying the one you want.  Supercharger prices range from $1500 to $4000 and up.

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