2.5" exhaust on a stock 5.0 ?
Reply #12 –
You can put 2.5" exhaust on your 5.0....it won't affect anything other than your wallet and the time spent installing it.
The standard 5,0, and even the HO by today's standards biggest drawback is the heads. 51 bucks for BBK 1515's...wish I'd looked on evilbay when I bought mine lol.
If you can swing it, get yourself an HO intake at least, or even better, an Explorer intake, and some GT40 or -40P heads and put on too. An HO cam and an EEC from a Fox 5.0 Mustang will get you into the HO power range...around 220-225 horsepower. The better heads (GT40P and bigger exhaust may bump that by another 10-15 ponies. Sure beats the 150-155 or so from the standard output 5.0 
Unfortunately with the pistons you have in your block, you're limited to an HO cam, as they don't have valve reliefs like the HO's pistons do.
My current project is an '89 5.0 HO engine, it's getting P heads, BBK 1515 headers, Cobra intake and explorer TB. I sealed it up yesterday and powerwashed it...today is dis-assembly day, with other little areas to clean up. This one is going into my '87 notch. I've already converted to 5 lug, with the dual piston '99+ Mustang calipers up front (which I highly recommend to anyone doing the 5 lug...SO much better than even the standard SN95 brakes!) and 3.55 8.8 rear with Ranger axles and drums. Good stuff. I did have to replace the rear brake line due to..umm...breaking the stock line, but I would have had to modify it to work with the different rear anyway. Thankfully I saved EVERYTHING from the donor Mustang, except for the VIN. lol
Then there's this burning question of what to with this low mile roller 351w sitting in my shop....hmmm. Thunderbird with a 5.8, anyone? Have to decide on whether to spend the millions of dollars on the efi stuff to keep it "right", or spend a few hundred for a carburetor. I have an intake for it...now I just need an AOD to put behind it and whatnot...