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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.
Grinding noisesunder the valve covers and a dry filter = bad. Did it have oil pressure before? Was the system primed before it was first started up? If no one put oil in the pump when it was built and the pump was dry, it may be that it couldn't get a seal and never pulled any oil. There is oil in the pan, right?
make sure the oil filter isn't clogged or blocked somehow. i've noticed that on some if u got a cheap filter they come covered with like a little plastic flap.