The EGR will not cause the problem given the code you posted. For a test, disconnect the vacuum line from the EGR valve and plug it. The car will run with it plugged, and you may not even notice the difference.
I hope that you tested the TFI before you replaced it. The $25-$30 it cost goes a good ways towards paying for a remanufactured distributor. Replacing the pip sensor is not an easy job without a press to remove the distributor gear.
In general , always test parts before you replace them. Throwing parts at a problem just makes you poor and want to get rid of the car.
Here's a book that will get you started with how the Ford electronic engine control or "computer" works.
Ford Fuel Injection & Electronic Engine Control 1988-1993 by Charles Probst :ISBN 0-8376-0301-3.
It's about $20 from Borders.com see http://www.amazon.com/ . Select boo...very good, and I found it to be very helpful.
i got a buddy who works at autozone he is big on imports but doesnt know crap about a 5.0 hooked me up with a "run nobodies looking" discount dont get that very often and the replacemnt distributor is $63 and has a PIP in it so that gonna be my next swap and im gonna try the egr test later. like you said i doubt its the problem but i got to start somewhere