those GT-40 heads will fit.. No the torque converter from a turbocoupe will not fit. If you change engine parts but leave the computer alone there will be no significant power increase.
These engines had 7.5:1 compression which is abysimal. What I would suggest you do first is either have the heads shaved at a machine shop or put on some different, higher compression heads.. the Gt-40 heads would be a good choice, you may even want to give those a shave. Also those heads probably have a higher resistance valve spring so you might think about changing out your lifters at the same time, maybe even consider a roller cam and lifters.. May as well do it all while it's apart, I say. Another good idea is to put on a roller timing chain while you got the front cover off, never a bad idea and a dual roller chain for those is only $20. This will open the engine up alittle but you wouldn't really notice too much untill you either ditched the EFI or got a special ECU for the car. And even then you would need better injectors to really reach it's potential. I believe the stock injectors are 11lb.. Later model mustangs have 17lb and 19lb injectors and that would be better but probably not enough. I would just suggest a 4 barrel carburetor and vacuum advance distributor. Some special $400 distributor isn't going to do much good.. just a regular distributor is fine.
If you need any of these hop-up parts, I have them. I have a 4 barrel aluminum intake that is a direct bolt-on. Exhaust headers that are a direct bolt on too, where you wouldn't even need to mess with your exhuast at all. A vacuum advance distributor in nice shape, I'd even throw in the wires (unless you want bran skippy new ones) I bet I got a set of roller lifters and cam somewhere. And then a holly 4 barrel- got a few of those.. Just email me if you want any of this stuff.
Superhuer@yahoo.com