I think you mean a 2.3L, 3.0L or a 4.0L as those are the only engines Ford has installed in Rangers that year. In 2001 1/2 they changed the 2.5L Lima 4 banger for the 2.3L 4 banger Duratech engine. The two V6 engines, the 3.0L Vulcan, and the 4.0L SOHC have been the only other two engines since about 98.
If you had a 3.0L I can understand why it didn't tow too well. That engine is kind of the orphan child of the Ranger lineup and frankly has never been considered one of their better ideas.
The 4.0L is a much better engine for towing, even if it isn't the best thing around for gas mileage.
Hell even the 2.5 or 2.3 are better than the 3.0 as they generally come with better (for towing) gear ratios (3.73 and 4.10) in the rear axles.
My 2.5L 2001 has happily towed other cars and trucks without complaining too badly. I just don't get to use 5th gear much.
Right now I'm looking to replace it with a new one, mine has 295,000 miles on it, with a 2.3L in and get a set of ramps to put the bike in when I need to. Just going to have to make some steel bar replacements for the tail gate cables because I can't trust them with the rear wheel of a bike as heavy as a Softail Custom sitting on it.

 

I've got a 05 mustang gt. It has a 1000 lb towing rating. I'm looking for a lightweight trailer to tow the FXST. How do you think it will handle with the kendan trailer? I know power is not a problem[sm=gears.gif]

 

Tractor Supply has the best deal 5x8 0r 10...650.00 .mesh or wood floor 13 " tires.Nice

 

My son has an 01 GT convertable and he says that its really a pain, not becasue the trailer is hard to tow or doesn't track well. But the car does it so effortlessly he has to keep reminding himself its back there on longer trips and he has to take corners wider and slower than his usual two wheel style.
Seriously the Mustang will tow a bike trailer fine, its longer, heavier trailers that may be a problem. A "stangs" shorter wheel base isn't that good for loads that get too long or high.
The good old fashioned full sized car or even one of the mid sized pickups are the better choice then.
But for a one bike sized trailer the Mustang will do it just fine. Just be careful of the curbs, they can flip a trailer, destroy a tire or both real quick if your not paying attention.
Just ask my son sometime.

 

I'm just looking to get a trailer to tow the bike to the shop for overnight stays. It's a pain to rent a car so I can leave the bike. Thanks for the reply

 

See the Harbor Freight trailer linked above. Hard to find a better one for your use.