Is a chip a good Idea?

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The more mods you have, the better a chip will help you. For example, someone who has exhaust, cai, t/b will benifit more from a chip than one who is stock. Since you have an auto, you can change shift points/firmness, and raise the rev limiter. But without other mods, it won't do much in the hp department.
 
Don't overlook used tuners if you want to save some $$. Find the model you need on the manufacturers web sites and look on eBay or Mustang sites for used ones. Since the recent release of the SCT XCal 2 used Dablo Predators and first generation Xcalibrators have been showing up a prices well below new. They do everything a new one of the same model will do.

A tuner will work well with or without mods, in fact the performance tunes they come pre-loaded with are designed for un-modded to lightly modded vehicles. Lighly modded would be dual exhaust, CAI, and/or underdrive pulleys. Rear gears (4.10s of course) with a T-Lok are an excellent mod for which a flash tuner can adjust the speedometer as well.
 
Sweet! Thnks man...I don't mean to be a bother, but how do Flsh tuners exactly work? Is it as simple as choosing something from a list? Or do you have to program it or what? Thanks again! And howe does the Horsepower and Torque gain work? Does it automatically gain when it is installed? and if I bought the SCT XCalibrator Flash Device is that all I would need?
 
They first save a copy of your stock tune in the hand held unit and then load a performance tune into your car's computer to replace the stock tune. I do not have a SCT XCal 2 so I don't know if you need anything other than the device to use it. A Diablo Predator and a Superchips Max Microtuner are easy to use, and you can simply choose from an on-screen list. You can also adjust certain parameters yourself, with the Predator having more adjustment options than a Superchips Max Microtuner. A Predator and the XCal 2 can also accept custom tunes, while the Superchips Max Microtuner can not to my knowledge. Horsepower and torque gains are achieved generally by A/F ratio and timing adjustments, and are automatic upon downloading the tune. Note that a performance tune from any of these tuners will require you to use premium gas.