Remove connector
Remove the cap
MARK both the distributor where it goes into the block AND the bowl of the distributor where ever the rotor points to.
Remove the half inch retaining bolt and retainer.
Pull straight up.
Install it in reverse order lining the dissy and rotor up to where it was before removal.
I recently did this myself (bad stator in distributor). Remove the cap and TFI wires and the hold down bolt. Note or mark the location of the rotor relative to the distributor housing, and the general position of the distributor. Then pull it up while working with it. The rotor will turn about 1-1/2" or so in the housing.
To install, turn the rotor to approximately the same position as it was when removed. Work with the housing so the end of the shaft goes into the hole in the block. I had to work on mine a minute or so to get it to fit. The rotor will turn back towards the original position as it goes in. The you will need to set the timing with a timing light to get it right. If it is off a tooth, it will still be OK when you set the timing right.
Take the coil wire out of the distributor. Pull #1 plug, put your finger in the spark plug hole. Have someone crank the engine until it starts to blow air past your finger. Stop cranking, turn the engine by hand (breaker bar on the harmonic balancer bolt, or put the car in gear and push) until the TDC mark on the harmonic balancer lines up with the pointer on the passenger side of the engine. Loose the distributor hold down bolt, remove the clamp, cap and wires, disconnect the wiring harness. Pull the distributor straight up.
The following re-install depends on the engine being lined up as in the previous instructions.
To re-install, turn the distributor rotor to point to #1 cylinder position on the cap. The#1 position is about 11 o'clock if 6 o' clock is the front of the engine. Line the rotor up with it pointing at the #1 spark plug position on the cap and drop it in: you may have to twist the shaft some to get it to engage the oil pump shaft. Then remove the SPOUT connector plug, and use a timing light to set the timing. The SPOUT is the dangling connector on the distributor harness on stangs made prior to 94 and with a computer controlled engine. 10* is stock for most 5.0s' 12*-14* is good for more pep if you are not into NO2 or power adders.