96 3.8 swap to 5.0 PLEASE HELP!

Hey, I have a 96 mustang with a 3.8 v6 engine with a t5 transmission. I got the car for $400.00 and it is just about in mint condition. I am building an engine with a 88 mustang block. I am going carburated to make it more simple. I was just wondering what I needed to do to get the swap done. I was wondering if a fox body t5 transmission would fit. I also believe I need a K-member to fit the 5.0. and would I have to modifiy the drive shaft at all? maybe a spacer? Would the 7.5 rearend hold up to a little under 300hp? Please help with all information.
Thanks
 
I think around 300 would be the absolute limit for the 7.5, Depends on what you plan on doing with it too. For example, a street car is one thing but if you planned on launching it hard... You might want to look around, if you only paid 400 for the car, a complete 8.8 inch rear end should be in your budget.
 
for the rear end i would suggest this
http://www.stangsuspension.com/store/comersus_viewitem.asp?idproduct=1506
you do need axels with that though so the setup will end up running 1100 or so but you shouldnt need to worry about it for a long time

ive heard either the fox t-5 will not fit, or its just the bellhousing ,im pretty sure its the t-5 itself though

for a k-member if your budget allows i would get an after market one, for better weight / and better controll arm angles griggs recomended but they are around 750

tis my .02
 
I just did the 3.8 to 5.0 swap into my 95. I had to use the 5.0 bellhousing but kept the t-5 from the 3.8. My 7.5 is holding up just fine playing around and stuff so if your just cruisin it should be fine with 300hp. As for the k-member, i kno the 95 cars had the same for both engines but not sure about 96. I would think it should fit though since it worked with the same swap in the 95? Good luck