Yeah you will need to either do a posui cable to engage your front axle, or swap in a solid axle on the passenger side. A solid axle is the better option. You might be able to swap the input shafts between the cases. It is easy enough to do, it just comes down to if the planetary gear is the same. Sometimes they will look and feel perfect even if the planetary is cut difference since the problems show under power. Just do your homework on the input shaft swap. I also think you will need to clock that TC if you want it to fit properly.
Complete rebuild axle/engine/everything swap in progress:
Parts already gathered for assembly: 2001 Ford 302, 1990 Mustang GT 5.0 ECU and wiring, NP435, NP205, Pair of axles from 04' F350 SuperDuty (Sterling 10.5 Posi rear, Dana 60HP Front-Both Disk Brakes 3.73 Gears), 37" H1 Tires, 9" lift TJ Coils for 2 link conversion in front, Stage 2 Clutch Kit, 3 Row Aluminum Radiator, Chevy Astro Steering box (4" front Stretch), XJ Rear Leaf Springs (6" Rear Stretch), and lots more.