I am having the same problem on my 97 Cobra. The vacuum line from the purge valve is not connected to the intake manifold causing the fuel vapor to release incorrectly and giving the same code. Also check the plug with three wires going into the purge valve that are located on the firewall.
FWIIW, the 96-98 has a very different EVAP system than the 99-04.
The 98 and older MY's have a purge flow sensor and purge solenoid mounted in the evap vapor lines near the firewall. The charcoal canister is located in the right hand fender well. On the 98 and older cars, the purge flow sensor fails a high percentage of the time.
The 99-04 MY Mustang has the VMV value in the right hand fender well. The charcoal canister and CV solenoid have been moved behind the rear left wheel near the gas tank.
The 99-04 system is able to detect a much smaller leak.
While the EVAP systems are very different in physical layout, the DTC code means the same. Namely, there is a leak somewhere in the system. The trick is to find out where.
I won't lie. It can sometimes be very difficult to find these. There isn't alot of pressure in the EVAP system. So if you are looking for something obvious, that's not always the case. Common sense says to start with the usual easy stuff and work up from there.
Regardless of the MY, check the gas cap. Next check the filler neck. These cars are getting old enough where rust through can be a problem. As stated before, gas vapors are very hard on rubber parts. If the seals are hard and brittle and leaves tons of black residue on your hands everytime they are handled, likely the lines are rotted from the inside.
Note, never use high pressure air in an attempt to locate an EVAP leak unless the air pressure is limited to 2 PSI. Yes that is (2) PSI! Anything over that is likely to blow out seals that were never designed for high pressure.