It was the fuel tank.

The car was sputtering and stalling.

http://forums.stangnet.com/showthread.php?t=577313

It wasn't the ignition, distributor, fuel pump, fuel pressure regulator, or fuel sender, all of which were replaced to correct the problem. It was the gas tank and it was completely rusted. Bits of rust were getting through the fuel filters and causing the needles to get stuck. The new tank from LMM arrived last wednesday and is already installed. The Lokar kick down cable and throttle cables just went in. Only thing left is to install the new rocker arm studs, Pro Magnum roller rockers, and Ford Racing valve covers and the RPM Air Gap and the motor is as done as it is ever gonna get.

10secgoal said:

GOOD ! You find the bits on the needle and seats, then figure where it was coming from ? Feels good right ?

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The carb is brand new too. When the needles got stuck the first time and the shop found some schmutz in there, they thought that it was crud in the carb from the factory. It happens all the time with new carbs. The second time, there was no visible crud and the fuel pressure was too high. The third time was the charm, with the rust bits being obvious.

ttoney said:

Funny how that is EXACTLY what I went through. It was backfiring like it was super rich?

Glad you nailed it.

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backfiring like a sumbitch. Sounded like 3 inch slugs through my SBE.