By the book it says it wont is it because the explorer has no distributor, and sensors? Any help would be appreciated. One more question did the explorers have the gt-40 and gt-40 p heads?
The Explorer engine will work fine. Transfer what you need from your current '94 GT to the Explorer block. This included the cam as well, since the stock Explorer cam is designed to promote more low end torque at the expence of horsepower.
'96 and early '97 Explorers had the GT40 heads, where the later ones got the GT40P's. Upgrade the valve springs on the GT 40/GT40P heads while you're at it as they're quite weak.