I have an 84 Camaro, carburated, with a 305. No smog either. I have a lot of ideas of what I want to do from here but I'm trying to stay realistic. Also, this is my first rebuild so I am not as knowledgeable as some of the vets on this page. I'm not sure exactly what my HP is but if could give a guess, its roughly 200 (if I'm lucky). My question is, what would be a good route to go as far as finding a happy medium between a weekend cruiser and with a good off the line and top speed? I have a premise but I'm hoping to talk to people who have done it with similar projects.

I'd find a good low mileage 350 vortec, get a 4bbl. vortec intake, remain Qjet carb, vacuum hei distibutor, a set of headers, & a good cat back exhaust.
A good upgrade is the L69 air cleaner but they can be pricey, or you can make your own. Plus there are open element & carb. hat styles to choose from.

Any recommendations for the rest of the drive train?

You've got 3.42 rear gears, thats a good ratio. Hopefully theres a limted slip in there.
You didn't say if its an auto or 5 speed, if its an auto then a mild performance torque converter would be good to do. You'll have to add a torque converter lock up kit if you get rid of the ecm. B&M sells them.
Putting that vortec 350 into your car should add atleast 80hp over your typical 305, so it will be pretty lively.

It's a 5 speed manual. What would I be looking at MPG wise? Right now I'm getting about 8 mpg.

Something is wrong if your getting only 8mpg, you should be getting 16 to 18 mpg average. A 350 should be close to that, unless you have a heavy right foot.

Thats what I was thinking too. So I babied it for a solid week and I kept getting the same number.

I'd be a little worried about backing up a 350 with a T5... Not exactly the strongest trans available from GM...

It's something I've taken into consideration but am looking into. Just a lot to consider and can be a bit overwhelming.