Aluminum headed 5.0 isn't 700 lbs. I'll see if I can dig up the weight.
Also, it should be noted that a 2.3L turbo was only about 100-150 lbs. lighter than the iron headed 5.0.
http://forum.turboford.org/cgi-bin/ultimatebb.cgi?ubb=get_topic;f=2;t=055113#000014
I think to get that kind of weight distribution in a Fox, you are talking about more than just engine weight. If it is a street car, I don't see it happening at all, but a race car might be able to get there.
The way I would do it would be with an aluminum headed 5.0 (aluminum block if you got 10K stashed away not being used) with a K-member to set the engine back. Remove A/C, smog, etc. A coilover and tubular A-arm setup would further help. If it is a GT, the fog light bracket and fogs should be removed. Use some aluminum to support the front cover.
On the rear, an IRS is heavier than the solid axle, so I would swap that in so that you get the advantage of lower unsprung weight, and the extra rear weight helps to balance out the overall weight distribution. Then move the battery into the trunk.
A Fiberglass hood up front,or Carbon Fiber if you have the cash, carbon fiber fenders, remove cruise control if it is there.
After that, I would start working on the small stuff. Extra sound deadener up front, extra wiring. For a road race car, you could do a dry sump oil system and mount the oil tank in the rear.
Drag racers may have more options.
A manual steering rack (could be done on a RR car, but most seem to like to keep PS)
Remove front sway bar.
Light weight brakes.
Parachute in the back.
Even lighter K-member.
That's all I can think of. Think we made it?