If your engine can support the airflow, I think it's entirely possible. This'll mean cam, intake, TB, MAF, heads, and exhaust, not to mention the fuel flow. I'd highly suggest staying away from the PowerDyne. Belt drives are quiet, yet have grave reliability issues. Go Paxton or Vortech, preferrably the latter.
Regarding the AOD: You'll probably want to get a higher stall converter that retains the lockup feature, and consider rebuilding and upgrading it significantly. Replace that damn TV cable grommet in the throttle lever before anything, though. Any Ford dealer should have it. I redid mine a few months back, and even with street racing it 3 nights a week, it'll still break loose shifting into second gear, and that's with 3.73's! I'm planning on an S-trim myself, but with it comes about $4000 worth of engine & drivetrain mods, and also traction devices yet to be decided.
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Capri306, Moderator, The Mustang Works Online
1979 Mercury Capri, 5.0L -- C4 -- 2.73
1987 Mustang LX Notch