Ok you have a 67 with a 6 cylinder and a 3 speed. Lets talk bad news first. The suspension, transmission, brakes, and cooling system put in the 6 cylinder cars was not as heavy as that put into the 8 cylinder cars. Now is the time to decide what you want to do with this car. If you are planning on a total rebuild, then it is not really a problem. If you just want to fix it up and drive it, then you have some problems. If I was going to do a total rebuild on the car (not as nasty as it sounds so long as you don't have rust or body damage) I would look to get aftermarket suspension components, a disk brake swap and a different axle. Plan on a different transmission too. My choices would be a carberated 302 (warmed up a little) a T5 five speed transmission, and an 8in rear with aprox 3.5 gears. But that is going to cost some, 1000 for suspension, 500-800 for brakes, 1000 for trany swap, 2500 for motor, 200-500 for axle.
Being your first car I would shy away from putting in a fuel injected 5.0 but I am kind of a wuss here. No computer to deal with, no intake problems.
Now some good news, even a 6 cylinder 67 is cool. If you don't want to spend a ton on go faster goodies, then decide to look classy. You can get ahold of Clifford proformance for some ways to warm up the 6 cylinder cars. Given the weight of old mustangs, the 6 cylinder cars can be pretty peppy. You won't make the power you could on a v8, but it sounds like you want something a bit warmer and not necessairly really really hot (which I think is a good idea.) Tire shreeding power is fun but not all that useful.
Enjoy you car either way. If it were me I would not spend a ton on converting the car unless you are really really in love with this car. There are other mustangs (and other cars out there) but we do love our first. I still have mine, a 66 tucked away in a garage. But I would rather cruise around in the 66 and build a different car for proformance.
Sorry this is so long, hope you find something useful here.
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