Help!

[MustangNewb]

*Reposted from Windsor board, figured it might be more appropriate here*

Background: I'm a 22 year-old college student from Queens, New York. I've always been turned on by cars, speed and mechanical engineering, I've just never got myself involved.

The Car: 1989 Mustang LX 2.3L 4-Cylinder Notchback, AT

The Problem: 1/4 mile in roughly 46 seconds

The Story: Well my '84 Regal kicked the bucket with a busted tranny, I picked it up for 800 about 5 years ago, it lasted long enough that's for sure. Point A to point B car. So I was in the market for a new car and I've always had a soft spot for the pony car. Wouldn't you know it? The day my Buick decided it was better to self terminate then have me drive it anymore a guy puts a blk on blk 1989 Mustang LX 2.3L 4-Cylinder Notchback, AT in EXCELLENT condition on my block with a for sale sign, $650!

Everyone I spoke to says I got this car for a steal, 105k miles on it and the tranny was rebuilt about 20k miles ago. The guy just wanted to get rid of it, was his girlfriend's car and she just bought a semi-new Grand Am. Anyways, I fell in love. This car was just what I needed to light the fire under my *** and give a damn about speed. Granted it's slow as **** but I find myself excited about owning a Mustang, sorta like that feeling you got when you were a kid on Christmas Eve.

Obsession. I spent an entire day washing and waxing this thing a week after I bought it (of course it rained the next 7 days after, including today). I'm looking to get started fine tuning this thing and I want to do a conversion to a 5.0 w/ 5-speed tranny. Or something better? I know nothing.

My questions: Should I do a conversion? Or save up and sell this thing and just buy an LX w/ a 5.0 already inside? Is there anything I should do now to it besides the usual maintance? I know squat and **** about cars atm but I am very technically inclined, where do I get started?

My goals are to street race. I'm not a **** talker, I'm competitive, but friendly competitive. I'm not going to be starting any fists fights over anything.

I have a Ford upbringing so I am definately impartial to keeping the block windsorish, but wouldn't be opposed to a cross-bread if it saved me big bucks somehow (don't shoot me). Thanks for taking the time out to read this!