Good mods to start out on a 1988 F-150?

[Vector]

Hey, I have a completely stock AOD '88 f-150 with the 5.0L V8 and am thinking of modifying it for a bit more torque in the lower rpm range and of course some better off the line acceleration and handling. I'm not looking to do anything too serious (head swap, power adder) but I am thinking of 4.10s, adding true dual exhaust (with flows) K&N filter, and anything to tighten up the handling of this thing. Basically any cheap first mod suggestions to increase performance are welcome.

For exhaust, I get that adding headers and what not will just lower torque on a stock engine, right? On a stang then you would just run an H-pipe back with flowmasters or whatever else exhaust you want, but is a truck the same way? Gears is a no brainer, as for induction how about a cold air induction, oh btw what is the stock setup on an F-150 for induction? It looks to be just up near the front where the hood closes. What kind of MAF sensor/throttle body does it use? I have no idea where to start on the handling department, I'm not looking for redneckin' mud racin but to make it handle better on-road -- deffinately reduce body-roll and tighten up the suspension, maybe lower it even (but not too much).

Also I wonder what kind of 1/4 mile performance these things do stock and if there is even any point going out and seeing . Also any suggestions for future more serious modifications are welcome! (and how expensive it might be to make this thing fast, like 13 second 1/4 miles!)