I'd say the number one thing to learn how to do ANYTHING on your car is the official shop manual. Well worth the $90 pricetag. There's also description and operation section before each repair section and you get all accurate torque specs and procedures.
Another book i have that i would highly recommend is "1979 - 1993, The Official Mustang 5.0L Technical Referance & performance handbook" by Al Kirschenbaum, published by Bentley Publishers. There's sections on how to upgrade Fuel injection systems, all technical specifications of flow rates for injectors, flow rates for water pumps, alternator outputs and identification.....as well as millions of other things you won't find in any other book, plus an overview of each model year from '79 to '93 with all build specifications. I think it's normally $35, which i think these two books are a must for a mustang library. This books also covers quite a bit of stuff up to '95 and even the explorer 5.0L engines and alot is still relevant to '95 models.
I also have the two mustang performance handbooks, which i would recommend to any do-it-yourselfer with access to welding tools because these are thorough in how to build your own stuff (the suspension book) and the engine performance book is pretty good as well. These i'd say get after the 2 other i recommended.
If you're into understanding the EFI system completely (The 5.0L tech. referance book is pretty thorough) you could also get the Ford Injection and electronic engine control book by Charles Probst, which is very informative but i didn't find the modification section to be too helpful.
I have quite a few other generic books, but at least the top two i'd say are most helpful and give you the most knowledge for the dollar (even though the manual is very expensive).
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2005 Suzuki Hayabusa GSX1300-R
1980 Ford Thunderbird - 255 V8
ported heads, 5.0L ported stock headers, O.R. H-pipe and Flowmaster 2-chambers, dual roller timing chain
hi-po Mack Truck hood emblem
1985 Mustang GT 5.0L T5, F-303, GT40p, headers, off-road h, flowmasters, MSD stuff, etc.
Sold 02/06/04 
1989 Mustang GT ET: 13.304@102.29 mph (5-24-03)
Sold - 1998 Mustang Cobra coupe, 1/4 mile - street tires: 13.843@103.41 (bone stock)
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