Well, I've spoken to a few people who have done this conversion many times at a couple of specialist early mustang places... and I'm a bit confused now in what direction to go. One theme was that it's not a straight forward thing to do, it would be best to get someone to do it who has done conversions before.
XF is an option, but one reputable specialist said that he would do everything you have done Reklaw - take the engine, booster out and take a nick out of the chassis, make any modifications needed to the shaft, make a custom drag link and put it all back together.... He also said that for a lot less hassle and maybe the same money after all the labour associated with an XF above you could get a bolt in RSS power rack and pinion and have modern/better steering.
http://www.rrs-online.com.au/gt-rack-and-pinion.htmlI rang RSS. For the rack kit it's $3095, excl pump, brackets and hoses. I have the pump & bracketry and will get hoses from somewhere, if you want to add RSS pump and hoses it's 700 and 385 respectively, bringing parts to $4180 - a lot of money.....
My thinking at the moment it it's beyond me to do the XF "right" without a lot of messing about. A rack is probably not beyond me and it will be "right", but for $3095...... plus whatever hoses cost. Ahh I'll sleep on it I think.....