In my opinion gears and a full exhaust system should be the first mods you get. But, with an AOD a stall converter seems to be highly recommended. A stall will eat up quite a bit of that $1000 so with what you have left I'd just save up until you could do a full exhaust system. Don't spend it on piddly chit like a cold air kit just yet.
You could however benefit a little from underdrive pullies, but I'd do the 3G alternator upgrade first which is less than $100 if you go with a rebuilt 3G from Auto Zone. With that you could install an electric fan too. I got my fan from Auto Zone as well and it works great. It was like $65 for the biggest fan they had.
That would leave you a couple hundred. Maybe you could go with some control arms with the rest. People have been known to get stock Mustangs into the 12's with only suspension and gears so it is a thought.
But like I said, I'd go for exhaust. I know of quite a few people (myself included) that were amazed at how much more pep their cars had with exhaust upgrades alone. And long tubes is the way to go if you plan more mods in the future.
A full second off your ET? Possible. Anything you add will be an improvement at this point.
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Project: 1988 Coupe - EFI 5.8L Twin Turbo with Victor intake, Canfield heads, F303 cam, March aluminum underdrive pulleys, TKO (or T56 if funds permit), PBR twin piston calipers and 13" rotors up front, 94 Cobra rear calipers and 12" rotors on the rear, 3.73's, Griggs K-member, tubular front control arms, torque arm and panhard bar, polished 99 Cobra wheels.
"The GR-40 kit installation is now complete, and the humble Fox-chassis car will now out-corner and out-stop a ZR-1 or a Viper, and support massive horsepower additions with perfect balance."
Griggs Racing
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