hey im 20 and i have a 80 trans am and its got a 301 v8 it may have a little rust but i have 5 grand to spend on it any suggestions on what i should do.

I guess first question should be, what is your goals with the car?

Get a REAL Poncho motor! Is it a turbo TA?

You bought a '80 T/A, so we already know it handles reasonably well. I personally would loose the 301 and build a Poncho 400. You could put together a nice 375-400 hp motor for less than $3500, including buying used cores, new parts, and machining. Just make sure before you start spending cash on your motor you go through the car and make sure everything (except the motor) is in good working order- brakes, steering, cooling, electrical.

Geno