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See if you can stretch your budget a bit more. Maybe to $1,400-$1,500 Fast food and all is cool, but there are some really good local eats along that route. Hotels, depending on the factors, will probably range from $60-$80. 4-5 hours a day driving seems a little short, imo, but if you got the time why not.
Route 66 through Arizona is beautiful (but flat). Easy to get your speed get the best of you and the LEOs there can get decent range from their radar runs. I'd probably borrow a nice radar detector.
Though gas is cheap, the 5.0 Mustang will eat away at your budget, especially in Arizona, Nevada, New Mexico.
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