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Z is a common short hand code for 'Mustang'. The Z may have been placed on the block to differentiate it from other engine assemblies. That is my guess anyways.
If the date code you are referring to was on a "boss" near the distributor, it decodes to year (7 - 67), month (G - July), day (6 - 6) and the "Z" is -- either the inspector or assembler's code (inspector seems to be more appropriate).Jim
I understood that much about the date, but I thought the last letter was supposed to be a "C" Cleveland or a "W" Windsor.