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1) Mark the timing mark on the harmonic balancer white paint marker works best (should be 10 degrees BTDC). 2) Get the engine to normal operating temperature then turn the car off. 3) Pull the PIP (profile ignition pick up) this is the little end cap looking plug that is on the wiring harness next to the plug on your distributor, without pulling this before setting the timing you will be doing more bad than good. 4) Once the PIP is pulled hook up you timing light (probe on cylinder #1 spark plug wire) then restart the car. 5) Crack the hold down bolt for the distributor slightly (should be a 13mm) just enough to spin the distributor and cap assembly clockwise or counter clockwise as needed (caution: if your wires or distributor cap are old beware, you could be in for a real shock literally)point the timing light at the timing marks and pointer (the lower left of the water pump- looks like a little arrow-)monitor the existing timing and set as needed. 6) Turn the car off reinstall the PIP, you are done. For more power set the timing to 12 - 13 degrees instead of 10 but you will need to run high test gas.(But it's worth it) Hopefully this information helps, enjoy your 5.0.
Just to add a little more info, the PIP on a 95 MustangGT is located on the passenger fender well just behind the Mass air box. It is a black plug in with a little grey square peice on the end about 1/2" wide. When you pull it out, put t in your pocket cause you don't want to loose it since you have to reinstall it after you set your base timing.
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