Tuner Vs. Chip

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That port in your pic is the OBD port. The tuners, I believe, will use that as the interface to upload the tunes, where as the chips go inside the PCM, ECU, or whatever Ford calls it. I could be wrong as I do not own a chip or a tuner, yet. As far as which is better depends on whether or not you are going to add mods down the road. The tuner is much easier to get new tune files for since they can be emailed. The chip on the other hand has to be removed and sent off for a reflash to change the tunes. If I am wrong, I am sure someone will let me/us know :scratch:
 
Best option is the handheld SCT. Very best option is purchasing the SCT handheld from your local Mustang shop. You pay the same price for the handheld unit but get multiple dyno tunes cheap $100.00. The dyno tunes as apposed to purchasing pre-loaded tunes is that dyno tunes utilize real world data pertaining specifically to your car. With simple bolt-ons and a dyno tune, I gained 30 HP and tune files directed towards exactly what my car has mod-wise and maximizes performance. Save up for the handheld. It does alot more than described here too. Trend logs, CEL codes and correction options, ect...
 
I'm new to auto mechanics and I'v had my Mustang for about two years now! I need to know which one of these will work best in my '98 V6! I also think I already have a port under my steering column, Pic Attached! Please help?

Tuner - http://www.americanmuscle.com/x3-custom-tuner-9698v6.html

Chip - http://www.americanmuscle.com/sct-4bank-custom-9498v6.html

Being new to auto mechanics, do you think you're ready to dive that deep into your engine's ECU?

Neither of those are as flexible as tuning via a real computer or have datalogging like a Moates Quarterhorse or similar, but the learning curve is a lot steeper for the QH.