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I believe that is about the time Ford went from a distributor-based ignition system to a direct ignition system (DIS). If I remember correctly, Ford adapted a cam position sensor to mount in the same location as the distributor. In fact, it looked like a sensor mounted on a distributor with its "head" removed. So, you should be able to buy a newer complete engine, and swap your distributor-based ignition system into place. Or, with what I believe would be minimal wiring, upgrade to the newer DIS system.
If you do convert to the DIS system, you will want to run Autolite or Motorcraft platinum spark plugs, double plats would be better yet. The DIS system runs reverse polarity on one bank, meaning that the spark plugs on that bank fire from the ground strap to the center electrode. It will eat other plugs, like the Bosch Platinums, every 7500 miles or so.
I do not guarantee my advice to be accurate, and consider to be worth what you paid for it. Just my observations of comparisons I made back when my mother still had her '95 Taurus, and I had my '01 Ranger.
If you are talking about the newer all-aluminum 3.0 Duratec 24V DOHC engines found some models of the Taurus, that is a whole different story. They will not swap easily.