what is the hole ( with oil in it ) on top of block in back of lower intake on 1989 5.0 w/ gt40 intake?

You mean at the back of the lifter valley. That hole allowed oil galleries to be drilled in the block when it was manufactured. That's why there's a plug in it. the plug has oil in it because it's exposed to engine oil...

Probably asking about the PCV hole in the back of the block that the wire mesh plug/filter goes in.

That would in the intake manifold, not the engine block.
 
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NO, did you see my pic? this is visible when intake is off. behind where PCV outlet is.
 

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It’s for a knock sensor used in truck applications. Came on the F1SE block so some Mustangs had them, but they are plugged.



‘89 should have an E7tE block, so your engine has been swapped most likely
 
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What sensors are you using? I kinda wanted to add this but since I didn’t have the F1SE block I didn’t think I could put them anywhere else

Edit: I’m an idiot. LS sensors
 
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