Sounds as if you have blown a fusible link. Don't know Fords that well, but usually these are inside the several hot wires going to the battery +, or the starter main +.
SOURCE: Air Conditioning Problem on a 92 GT mustang
Might be best to go for 60/2, sixty mph with 2 windows down! LOL Car is too old to be worried about little probs! Frankster016
SOURCE: 1984 Ford F-150 Starter problem
You have a bad connection. It will pass enough current to keep things running, but the starter load is causing it to burn the spots that are making contact.
I had this same issue with my '86 F-150, and the final solution was to replace the all the heavy cables: battery to solenoid, solenoid, to starter, and block to battery ground. Thoroughly clean the block where the negative cable connects, and the battery terminals.
SOURCE: cannot connect the negative battery terminal without spark or starter turning over
You will need new igniton cylinder. Sounds like you have a short in the cylinder.
SOURCE: 83 mustang gt
the regular gt had a 5.0 in it the only stang that had a 2.3 turbo was the svt mustang
SOURCE: need a wiring diagram for a 1984 ford mustang gt
You can get a Chilton's manual. They have wire diagrams inside the book :)
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