From the Ford manual....
The system uses a temperature blend method to provide controlled temperature to the vehicle interior. With this method all outside airflow from the blower passes through the heater case to the plenum assembly. Temperature is then regulated by heating a portion of the outside air and blending it with the remaining cooler outside air to the desired temperature. Temperature blending is varied by the temperature blend door which controls the amount of air that flows through or around the heater core where it is mixed and directed into the distribution plenum. The air is finally directed to the heater ducts, the defroster nozzles, or the instrument panel registers depending upon the function selected with the control knob.
The control assembly is located in the instrument panel at the right of the steering column. The control panel has three knobs marked SELECT, TEMP and FAN. The SELECT knob is for selecting the desired system function: OFF, FLOOR, PANEL (VENT), MIX or DEFROST. The center knob TEMP is for setting the desired temperature from cool to high heat. The FAN knob is a blower switch to control the volume of air movement. Each position of the SELECT knob and the FAN knob is detented for positive engagement. The FAN knob provides four manually selected blower speeds.
A cable assembly connects the temperature blend door with the function control knob in the control assembly. When the function control knob (SELECT) is in the OFF position, the temperature blend door is positioned to block passage of air to the distribution outlets.
As the function control knob is moved toward the PANEL (VENT) position, airflow gradually increases to full flow from the panel registers. As the function control knob is moved from the panel to the FLOOR position, flow gradually increases to full airflow from the floor heat distribution outlets and side window demisters.
When the function control knob is moved from FLOOR to the defrost (DEF) position, the amount of airflow from the floor heat distribution outlets will gradually reduce and the amount of airflow from the defroster outlets and demisters will increase.
With the function control knob in defrost (DEF), the air will be discharged from the defroster outlets onto the windshield and the demister registers onto the side windows.
Diagrams courtesy of Tmoss & Stang&2birds
See the following website for some help from Tmoss (diagram designer) & Stang&2Birds
(website host) for help on 86-95 5.0 Mustang wiring Mustang FAQ - Engine Information Everyone should bookmark this site.
Ignition switch wiring
http://www.veryuseful.com/mustang/tech/engine/images/IgnitionSwitchWiring.gif
Fuel, alternator, A/C and ignition wiring
http://www.veryuseful.com/mustang/tech/engine/images/fuel-alt-links-ign-ac.gif
Complete computer, actuator & sensor wiring diagram for 88-91 5.0 Mass Air Mustangs
http://www.veryuseful.com/mustang/tech/engine/images/88-91_5.0_EEC_Wiring_Diagram.gif
Complete computer, actuator & sensor wiring diagram for 91-93 5.0 Mass Air Mustangs
http://www.veryuseful.com/mustang/tech/engine/images/91-93_5.0_EEC_Wiring_Diagram.gif
Complete computer, actuator & sensor wiring diagram for 94-95 5.0 Mass Air Mustangs
http://www.veryuseful.com/mustang/tech/engine/images/94-95_5.0_EEC_Wiring_Diagram.gif
Vacuum diagram 89-93 Mustangs
http://www.veryuseful.com/mustang/tech/engine/images/mustangFoxFordVacuumDiagram.jpg
Vacuum Diagram 87-93 Mustangs
The diagram says 88 Mustang, but except for the vacuum line connected to the MAP/Baro sensor, it is the same for all 5.0 Mustangs from 87-93. The 89-93 Mustangs vent the MAP/Baro sensor to open air.
http://www.veryuseful.com/mustang/tech/engine/images/88Stang5.0Vacuum.gif
HVAC vacuum diagram
http://www.veryuseful.com/mustang/tech/engine/images/Mustang_AC_heat_vacuum_controls.gif
TFI module differences & pinout
http://www.veryuseful.com/mustang/tech/engine/images/TFI_5.0_comparison.gif
Fuse box layout
http://www.veryuseful.com/mustang/tech/engine/images/MustangFuseBox.gif