Howdy Bob:
We recently had a chance to drive an '81 Mustang coupe with a 3.3 and a 4spd OD, and we were more than a little shocked at how gutless it was. It had a factory tach in the dash. It had a very hard time getting up to four grand. It was so different from my stock '65 200, 3spd Ranchero that it was shocking.
I have no idea on it's state of tune, but it had been sitting for quite some time. In trying to figure out the differences we came up with several limiting factors; 3.08:1 rear gear, stiffling exhaust, 8.6:1 compression ratio, EPA feed back Holley #1946 carb, retarded cam timing, possibly a Calif only distributor module.
I listed this items only because I'm guessing that your LTD is encumbered in the same fashion. Yes, the earlier exhaust manifold will fit. I would use a '67 to 69 vintage to avoid the EPA bungs cast onto later exhaust manifolds. It will have a 2" outlet, so build the rest of the exhaust system to match. Check your state laws and EPA requirements on cats, but on a vehicle this old you may be able to get by with an internally clean system.
The Holley/Weber is a nice upgrade, or possibly consider a Carter YF in the 195 CFM model. Check Dougs site for details. The YF will be more of a direct bolt on.
These two changes should make a nice improvement.
Then I'd be looking for a rearend swap to get a better gear. You didn't say what tranny you have, but a 7.5 or 8.8 rearend in a 3.27:1 ratio should be a bunch better. You will likely have a 2.79 or 3.08:1 ratio.
But start right now by increasing your initial advance setting to about 12 to 14 degrees.
Improving the head, and getting a cam timing gear in a straight up position are more involved, but that's where the real power is.
Keep it straight!
Adios, David