Just finished putting a 3.8 out of a 99 mustang into my 97 f-150 that had a 4.2 automatic trans with 245,000 miles and wanted to tell everybody how easy this swap is. There was only 5 parts I had to swap off the old 4.2 to the 3.8 and that was the intake manifold, water pump,cam position sensor,oil pressure sensor and the knock sensor. All my accessories,power steering pump,air conditioner compressor,and alternator all bolted right up.
I purchased my motor out of a 99 mustang with 3.8 automatic trans and 49,000 miles for $400.00 at a local wrecking yard. Be sure you get the flywheel with the engine because it is differant than the 4.2 flywheel and must be used, it will bolt right up to your convertor and trans. The harmonic balancer on the 3.8 is 1/2 inch bigger than the old 4.2 but was not a problem I still used the old 4.2 belt with no problems. The water pumps are the same except the fan bolted on a little differant than the old one.
Also no need to pull the air conditioner condensor,just pull the radiator and you will have room to make the swap. I placed a piece of 1/4 inch plywood in front of the air condensor in case I accidently hit it. Have put a couple hundred miles since swap and everything is going great!
