Remove the drift pin from the shifter, and pull the extension housing and top shift cover. The first big move is to remove the Fifth-gear slider assembly. | 
The instructions say you can remove the entire cluster gear without pressing off the rear bearing, but Moore had to press the bearing off to get the cluster out and again press the new bearing on the cluster after it was in the case. | 
This is the new 2.95 gearset from D&D. It includes a new cluster and input shaft; new First, Second, and Third gears; and a new steel input-bearing retainer. |
The rebuild kit includes all new bearings and synchros plus a pile of all the little parts that make for a professional rebuild. | 
At one obscure point, the Overdrive gear (arrow 1) is splined tightly on the mainshaft and retained with a snap ring. Note that the collar (arrow 2) is located next to the snap ring. That's not made clear in the instructions, and the gear will go on either way. There is only enough room for the snap ring with the collar next to the snap ring. | 
Install the extension housing then check the endplay with a dial indicator on the output shaft. D&D says mainshaft endplay should be between 0.001 and 0.005 inch, adjusted with shims under the bearing retainer. |
Boneyard Warning
The T5 used in the 5.0L Mustangs is very similar externally to T5s used in numerous other rear-wheel-drive applications-mostly in turbocharged SVO and nonturbo'd, four-cylinder Mustangs; the '89-'93 T-bird SC; 305ci Camaros and Firebirds; S-series pickups; and the '84 Nissan 300 ZX to name a few. These boxes all used different, and mostly weaker, First-gear ratios, with one as deep as 4.05. The one exception is the 305 Camaro/Firebird 2.95 WC First-gear boxes from '88-'92. According to D&D, these boxes are basically as strong as the comparable WC Ford 5.0 transmissions. Do not be fooled into thinking you can adapt the other T5s into a high-output, V-8 application. We don't need to tell you the Nissan boxes do not interchange with the Ford units, do we?