With a 351W you have the potential to stroke it to get some serious cubes (408 or more) that can equal some serious power, but it's gonna cost you in terms of weight (block is supposed to weigh around 100lbs more than a 302) and the taller deck height (mandatory hood swap).
Personally, I had wanted to run a built up 393W in my '94 GT, but I have changed my mind to run a 347 for several reasons:
1. I want to autocross this car and increasing front end weight won't help cornering (I'm already planning on a tubular k-member and aluminum heads).
2. I like the idea of a "sleeper" GT and I don't want it to look too different from factory (other than some 17x9 Cobra R's) by a cowl hood (tho i think it looks cool in its own respect)
3. (I know I'm gonna get some flack for this one) As this car is my daily driver (15+K miles/year) and I don't have unlimited income, I'd still like to have lots more power than I need but not be too much worse off at the pump. Yeah, I know I could just do an s/c, t/c, or giggle gas, and get some mileage, but I'm a naturally aspirated kinda guy. Since I can't run slicks on the street (legally) I wan't to chirp 3rd & 4th, but I don't want to have so much power that I'm constantly spinning them.
Sorry for going OT a bit, but just wanted to give you my perspective.
It all comes down to what is your plan for your mustang. Straight line? Corner carver? Knowing what your goal is helps decisions on the way and prevents you from getting disgusted with the project because you could wind up spending more than you want on things you don't "need".