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5.0L (1979-1995) MustangTechnical discussions on 5.0 Liter Mustangs within. This does not include the 5.0 from the 2011 Mustang GT. That information is in the 2005-1011 section.
I dunno about the valve covers....I'm going to grind the baffles out of mine. I've also heard you can use 2 of the rubber gaskets on each side to add a little clearance. With the 1.7's and the E cam, you'll be a .529 lift...you should be okay, but it wouldn't hurt to clay it up for you own peace of mind.