305s have potential and is much better than a 2.8. I have seen some putting more power than many 350s here. And then of course you can always easily upgrade later. Let's assume you find the correct used basic kit for your engine for $700 then plan to spend at least $1.8k6+ to begging with for swap parts asuming your engine already came with ramhorn manifolds.
remote oil relocator -$40
starter - $150
clutch assembly - $300
electric water pump - $250
custom exhaust (muffler, pipes) - $100 (using cheap cherry bombs and cheap pipes and doing it yourself with borrowed welder)
fuel pressure regulator - $50
hoses, clamps, fittings, plugs, oil, coolant, misc, etc. $250
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Palm Beach Fieros
http://pbfieros.tripod.com 
Red: TPI V8 + 6-Speed Yellow: Nitrous 3.4 + 4 speed Auto
[This message has been edited by Alex4mula (edited 12-22-2006).]