Yes it is! You can't use the tranny or rearend in a Mustang swap but the motor itself is exactly the same. The turbo will be a T3 60/48. It could be a head gasket or a cracked head, pretty common occurance. There's usually a head or two on ebay. I'd grab it, swap the motor and part out the XR to recoup some of your $400, if not all of it!