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1. Yes, the rod from the pedal to the Z bar may have to be modified or swapped out with one the kit appears to supply. Of course, the Z bar goes away, but the pedal itself is used. You may have to take the large blue spring under the dash out. If you follow the shop manual it can be safely & easily done. Any other method is dangerous and a bear.

2. I don't know if the top loader & T5 share the same clutch splines. If so, yes. I'm not sure why though. While you're that far into it, it makes sense to replace these if they have a lot of miles on them. I'd have the flywheel surfaced at the very least. I put in a clutch replacement kit by Valeo for a stock 5.0 in mine. I purchased one from, I think Rock Island Auto, for a very reasonable price that included pilot bearing, throw out bearing, clutch disc & pressure plate. Much cheaper that Mustang specific suppliers or local parts house. Valeo was OEM supplier.
 
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