Don't smoke
Import Slayer:
The smoke sounds like valve guides or other type of blowby so yes, you need to do a compression test to see where you are on engine condition. At 60,000 miles, you shouldn't have anything seriously wrong but who knows? It's a used car and could have been abused.
If the bottom end (i.e. piston rings) tests well, you may need some valve work and this could be an opportunity to rework the stock heads (porting, new springs, valves, etc), maybe add an aftermarket intake and pick up the kind of power increase that would almost guarantee 13's for your Mustang.
Get the 3.73 rear gears; they are a 'must' for better performance. The stock 2.73's are there for gas mileage and less engine wear (to meet U.S. CAFE standards and escape warrantee expenses for Ford) but they hold back performance, even on a stock 5.0 Mustang.
Losing weight on your car is the hard way to go faster and usually reserved for all-out race cars. It takes 100 pounds of weight loss to lose a tenth from your et so you can strip a lot from your car and barely see more than a tenth or two - and have a very uncomfortable car as a daily driver. Example: The A/C equipment - including the big compressor - totals about 65 pounds.
Leave the seats and the insulation alone, concentrate on adding power to the engine, not losing weight. Believe me, it's easier. A set of aftermarket heads & an intake, headers, gears, a few other mods and you're well down in the 13's. Add nitrous and your in the 12's. Go for it.
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