I just delt with this 2 weeks ago on my sisters 98 taurus. Everything seemed to be fine like thermostat, fans, all hoses getting hot, pump working, and the a/c worked great, but just no heat. After a couple hours of reading I found that taurus are notorious for the blend motor having a problem.
To troubleshoot if this is your issue try this:
Start the car and run the blower full blast, slowly turn the temp control from hot to cold and back. You should hear the blend door moving under the dash. If you don't then that is the issue. These cars are not vacuum accuated like other fords, they have a dc servo motor in a box that pull the lever for the door.
If you remove the ashtray or glovebox you can see behind where the box is and try to see the metal arm that it moves. Turn the knobs hot to cold again and see if the arm is moving, if not try to move the metal arm in and out to manually adjust the blend door and see if the heat starts to work.
The box is nothing but a motor that has all plastic gears and they strip or break the teeth after a while. I went to the local pick-n-pull and got a box. The first one I pulled at the yard I opened up to check the gears and they were missing teeth. The next taurus I tried I opened and it was all good so I bought it, the only charged me $3 for it and there were over a dozen tauri at the yard, Ford wants like $100 for the module, and they don't sell just the gears..
Here is the location behind the dash. (random pic, no need to pull dash to get to it, just the glovebox/ashtray)