I went to have my 88 towncar inspected and the guy said i need a power steering belt, the power steering pump&box leak and the pitman arm is loose. what kind of tools am i going to need to do this project and is it an easy fix to do myself??

the most likely culprit is the power steering box, there is a product available on eBay called leak fix that is designed for power steering systems, I used this on my 96 explorer that was leaking by the pitman arm from the steering box, that was 4 years ago & with 2 changes of fluid since it still hasn't leaked one drip

The bubbling is just the air being removed by fluid, no problem. the foaming is just the pump action, no problem. As for the leakage, remove the pitman arm and replace the seal on shaft the pitman arm is bolted to. If you still have leakage, replace the seal in the top of the box where the column bolts to the box for it's just running down the box and looking like the leak is from the bottom seal.

check the serpentine belt

The pitman arm seal can be replaced by removing the pitman arm, prying out the old seal and driving in a new one. However, usually when the seals start to leak it's from a bad bearing or excessive play in the steering box.

you don't have to remove the steering box to do a pitman arm. Take off the one 1/4 in. nut, or whatever size it is, take the nut off the center link, put a pitman arm puller on the steering box side, and tighten the puller until you can't go any further, and hit the adjuster w/ a hammer hard, then tighten some more and repeat

Are you refering to the seal on the bottom side of the steering gear box? The side the pitman arm connects? If the seal is damaged and leaking you can run out of power steering fluid which in turn could rouine your power steering pump and steering gear box.

Take the bolts out that attach the steering box to the frame and pivot the box so you can fit the puller on.
Leave the steering shaft and power steering hoses attached.
Mark the new pitman arm and old one in the same place and mark the pitman shaft to keep the same position of the new pit man arm on the old shaft as the old pitman arm.

If it's coming off the "steering box", not the power steering pump, the part is called a "pitman arm".

What I think you are referring to as the pump is really the steering box because the pump doesn't have an arm connected to it. The pump has 2 hoses and a belt going to it. From what you describe it sounds like you need a pitman shaft seal. The seal is replaceable but you will need a pitman arm puller to get the pitman arm off. If you don't have or can't get a puller don't even bother starting the repair, as you WILL NOT get the pitman arm off without one. When you get the pitman arm off clean out around the shaft and you will see a snap ring. Remove the snap ring. Now make sure the power steering is full of fluid. Start the engine and turn the steering wheel all the way one way or the other and hold it there while increasing the RPM. Doing this will literally "BLOW" the seal out. There will be a couple of spacers and maybe another seal that come out of the hole also. So read the installation instructions that come with the seal kit and it will have a picture of where the components go and in what order they go in. Don't forget the snap ring. When done replaceing the seal you have to center the steering box. From all the way one way turn the steering wheel all the way the other way and count the turns. Now turn back the other way half as many turns and the box is centered. With the tires pointed straight (not turning) the pitman arm should go right on. The pitman arm will go on the pitman shaft in 4 different places. So if you don't center the box and the wheels you might have say one turn to the right before the steering wheel stops and three turns to the left. With all this done fill the power steering with fluid. With the front tires off the ground and the engine NOT running turn the steering wheel all the way from stop to stop 4 or 5 times and then check the fluid again. Fill the fluid and turn wheel from stop to stop another 4 or 5 times. Doing this will "bleed" most of the air out of the system. Now start the engine and turn wheel from stop to stop a few more times to "bleed" any remaining air from system. Turn off the engine and check fluid level. Hope this is helpful.

take big nut off that holds pitman arm to it ,use pitman arm puller to pull off pitman arm. I would get a rebuilt unit ,my luck is that the shaft is so foofed that the new seal wont seal it either. also that shaft that connects to the pitman arm probably moves side toside, so the bushings inside are shot. remember this thing is OLD