MustangWorks.com : Ford Forums - Project Blue Baron

Ok guys I've been on this board for a while on and off reading more than I post. I like the community a ton here than any other mustang boards, not to mention the knowledgeable people here. So far I got a lot of good input from Tireburner and wanted to begin this project in late May. I currently have a 1987 Mustang 5.0 LX that was a former police interceptor. As well I'm relatively new to auto mechanics, my dad and I can do just about every bolt on and I have some buds to help me with heads and such. This summer I hope to work at the local campus and get about 2k+ in money to trick this car out to how I want it. First I'm gonna start with the internals and work to the interior and exterior. I was just wondering if you all here could help me build this? I need tips on what to use and as to what order. Currently the car is:
Rebuilt 302 bored .40 over to 308 (recent rebuild)
Rebuilt T5 tranny (recent), MAC Unequal shorty headers
Ford Racing Clutch
Underdrive pullies and BBK cold air intake (not my choice!)

Thats it so far when I got the car. As well the block has BAD valve guides and needs new heads. It smokes and backfires :( a buddy of mine did the "dollar bill" test which sucked it in when I put a dollar bill to the exhaust tip. Anyhow I decided to go TFS products and get some trick flow heads first. Considering I was gonna go offroad x-pipe and pro 5.0 shifter first I might as well fix this smoking problem with getting new heads.

Still with me here? :o

Just wondering if you guys could help me along, me being too much of a newbie, I need your input! :) Thanks! Here she is, not the best pic and evil turbine wheels. More to come.

http://bobthegreat.tamu.edu/temp/stang.jpg