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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 would think something a little rough, like a 240 or something(by hand so you don't heat it up) Any I would just do it dry, but to each their own....you don't wanna get that crap on you engine(water and grit) from sanding.