CODE: 31 (KOEO) - EVP circuit below minimum voltage. Vref (5 volt reference voltage supplied by the computer) missing or broken wire or bad connection in circuit. Use a DVM to check for 5 volts on the orange/white wire. If it is missing, look for +5 volts at the orange/white wire on the TPS or MAP sensor located on the firewall near the center of the car. Use the black/white wire for the ground for the DVM.
With the sensor removed from the EGR and still connected, press the plunger and watch the voltage change on the brown/lt green wire. Pull the passenger side kick panel and measure the voltage at the computer. You will need to remove the plastic cover over the wires and probe them from the backside. A safety pin may prove very useful for this task. Use pin 27, EVR input (brown/lt green wire) and pin 46, signal ground (black/white wire) to measure the voltage. The orange/white wire is Vref and should always be 5 volts -/+ .25 volt. Be sure to measure Vref at the EGR sensor to rule out any broken wires or bad connections.
Code 67 - clutch not depressed (5 speed) or car not in neutral or park (auto) or A/C in On position when codes where dumped. Possible neutral safety switch or wiring problem. This code may prevent you from running the Key On Engine On tests. You can generally ignore this code, since it has no effect on engine performance.
Code 81 – Secondary Air Injection Diverter Solenoid failure AM2. The solenoid valve located on the back side of the passenger side wheel well is not functional. Possible bad wiring, bad connections, missing or defective solenoid valve. Check the solenoid valve for +12 volts at the Red wire and look for the Lt Green/Black wire to switch from +12 volts to 1 volt or less. The computer controls the valve by providing a ground path on the LT Green/Black wire for the solenoid valve.
See
http://www.veryuseful.com/mustang/tech/engine/images/88Stang5.0Vacuum.gif for help on the vacuum line plumbing.
Remove the large rubber hoses from the rear of the aft vacuum control valve. One hose goes to the pipe to the back of the heads. The other hose goes to the pipe that goes to the cat converters. Start the engine and apply vacuum (steal a line from the manifold somewhere) the airflow out of the valve should switch from one outlet to the other. If it doesn't then the vacuum control valve is bad.
With the engine running, stick a safety pin in the LT Green/Black wire for the solenoid valve & ground it. That should turn the solenoid on and cause air to flow out the port that goes to the pipe connected to the cats. If it doesn't, the valve is bad. If it does cause the airflow to switch, the computer or wiring going to the computer is not signaling the solenoid valve to open.