I find a lot of those Big Nose Mustangs have pretty high rear axle gear ratios, like 2.79:1 or 3.0:1. That is great for saving money on gasoline. But, if you are after some really snappy performance, unless you add a lot of horsepower and torque from the engine, those steep gear ratios are going to muffle how snappy the Mustang is. Just going to a lower gear ratio, like 3,91:1 or 4.11:1 will get you some really spirited performance, especially with an engine that has been built to produce more power than the stock engines used to deliver. But, you will be spinning some pretty high engine RPMs at 60 MPH also. What you need to do is find a suitable balance with your rear axle gear ratio.
The prior owner of our 73 Mach 1 replaced the original 302 2v engine with a 1994 F-150 351W (not C) engine that was built to produce 360 HP on a dyno. HE also replaced the original 2.79:1 rear axle gear set with a 3.5:1 TractionLok gear set. I found his choice of 3.5:1 ratio gears to be a nice compromise where we still get very spirited performance, but the engine was only turning just under 2,900 RPM at 60 MPH in 3rd gear (C4 three speed auto). Our 73 Mustang Convertible has a 302 2v with a C4 tranny, and 2.79:1 rear axle gears. I decided to not do anything to increase the power of the engine unless I was also willing to put in a lower ratio rear axle gear set. The 2.79:1 ratio gears work, but the vert is very pokey in acceleration.
Anyway, to your question re: what to beef up when building an engine for more horsepower... Luckily you already have power front disc brakes. Unless yu you plan to track and race the car there really is no reason to upgrade to a 4 wheel disc system. You have plenty of stopping power as long as the pads and shoes have enough frinction materiaal on then, and the drums and rotors are in good condition, as well as the master cylinder and power brake booster. The stock C-4 tranny may work well for you with a little mor epower being sent into it. 140 additional horsepower is not going to cause the C-4 to fail as long as it has good ATF in it, is not overheating, and you are not thrashing the car or doing a lot of racing, Keep the bands properly adjusted, especially intermediate band. If the C-4 needs to be rebuilt the Sun Gears and Pinions out to be upgraded to a high performance set of gears. The valve body can be improved with firmer shifts with any number of aftermarket valve bodies or valve body improvement kits. If you are going to be racing around an external automatic transmission cooler would be a good thing to get.
I would be looking at the suspension for worn bushings, weak springs, and even stiffer anti-sway bars.
For our 73 Mach 1, with its C-4, I began to get some slippage in Wide Open Throttle 1-2 upshifts. Rather than rebuild and beef up the C-4 I opted to get a well build AOD 4 speed auto tranny. I video recorded the entire process, including showing how to adjust the Throttle Valve Pressure. Now at 60 MPH in 4th gear I am only spinning the engine at just under 1,900 RPM. Yet, with the power of the built 351 I have plenty of HP and torque to overcome the air resistance at the higher speeds the OverDrive gear ratio provided. In fact, the AOD worked out so well that if I wanted to so turn the Mach 1 into a really mean street machine I would move to 4.11:1 or even 4.88:1 rear axle gears (with TractionLok), as the OverDrive gear ratio would help keep the engine RPM at a reasonable level as highway speeds. But, in my case I am not chasing more performance, so I will leave things as they are.
In cased you are interested in swapping in an AOD I have a series of links below, plus attached a few files, showing how we did the swap, and a list of parts and vendors we used.
Have fun!
The following link is for the Neutral Safety/Backup Light Switch splicing:
https://youtu.be/vdR-z3KV0UE
https://youtu.be/YCBBgd-olQ0
https://youtu.be/NcYr68atRjM
https://youtu.be/iFNXTGXNNcQ
https://youtu.be/2tTwnbcZZkY
https://youtu.be/8QncIKQTvNo
https://youtu.be/b4lnPReGWuM
https://youtu.be/zfYe--Gsjdk
Setting up Throttle Valve Pressure from the carburetor cabling, and how the original auto tranny floor shifter behaves with the AOD when shifting manually:
https://youtu.be/KYIAqqYUKNo
More below
This video shows there is a difference between TV pressures in Neutral vs Park:
https://youtu.be/6hZJEnGCPvY