Yes, you will run into problems. The wiring will not match up. Were nothing is imposible I would recomend you get the wiring diagrams for both years a weekend and a couple cases of beer.
Nothing about these cars is ever easy, oh well. I guess its time to break out the old shop manual and see what can be done. Thanks for the reply. If you did it do you have any pics of the install mr67stang?
I figured this little problem out about a year and a half ago when I bought a 66 and the previous owner suplied me with an underdash wiring harness that did not match the instument cluster. Further investigation proved the suplied wiring was for a 65 so I bought a 66 harness.
Several years ago Mustang Monthly had an article that detailed the complete conversion. It is a great resource.
Basically, you will need to run some new wires and add the appropriate oil sensor. You must add wires for the ampmeter to function--the idiot light wiring is not enough. There is also the problem of the turn signal whereas the 65' has one light and the 66' uses 2.
The speedo cable, dash illumination lights, high beam light, gas gauge wires, and temp gauge wires will all interchange with the 66'
It is best to do a little notching of the dash, under the speedo as the 66 speedo pod is slightly taller. You will also need to rebend the dash screw tangs and add the 66' clips to make a complete conversion.