fuel filter causing uphill stalling/surging?

my friend's stang has stalling problems mostly when going uphill... I'm thinking it might be dirt in the fuel filter, which is a much easier thing to fix than the torque converter... transmissions are not cheap, and this car already has plenty of other issues... (think it needs a head gasket as it smokes a bit...)

btw, where's the fuel filter on an '85 2.3 carbed? I got a replacement from an auto parts store but can't locate where it would be in the engine compartment... the manual shows it just to the rear of the oil dipstick, but I don't see it there... pictures would help... (: there seems to be a fuel filter looking thing on the front passenger side of the carb...

any other ideas on what might be causing the stalling? it doesn't totally die, but just surges a lot the steeper the hill is...

thanks!

Ok, smoking how? If it's a vapor type smoke (i.e. not smoke per se but vapor) and smells like coolant then it likely has head issues. BUT if the smoke is actual smoke and black or blueish then it is oil. If it is burning oil that is either the result of worn out piston rings (requiring a rebuild) causing blow-by, or leaking valve seals, requiring a valve job.

As to the stalling issue: The fuel filter is an unlikely culprit. Changing it would do you good just on general maintanance grounds, but I'd highly doubt it is causing stalling when going uphill, because if it were the fuel filter it would have a constant effect rather than one that only happens when going uphill.

I'd suggest taking it to a local repair shop and asking for a block test. If it is the head gasket leaking that could cause hesitation/stalling when under load, and a block test can answer your question in a few seconds for virtually no money. Find out if it is even worth repairing and what the problem is before anything. Cool?