I have a 86 ta t5 wc and a mild built 350 pushing it and it does great until about 3,500-3,700 rpm it stops accelerating but the rpm still go to 6k and just smokes the clutch what's the problem

 

Pressure plate is worn out, or not strong enough.

 

It has a stage 2 hd in it now what level would be my best bet? Is it possible that the gears are just limiting out before the rpms limit?

 

Gears don't "limit out".

Neither do RPMs. (unless done deliberately)

Sounds like you need a clutch.

Doesn't too much matter what's in it now; it's toast. Sounds like a normal stock replacement ought to be just fine.

 

Stock replacement should be fine as Sofa suggested. I'd add a flywheel to the list too. Yours is probably burnt.

 

Have any of you used light weight flywheels or the puck clutch disk style are they better or last longer?

 

"Better", depends on the circumstances.

Remember: sayings like "product meets expectations" requires 2 things to be evaluated: both "product", AND "expectations".

I'm not seeing where either of those drivers of decision making require any of the above.

If your flywheel is compromised, get the one for L69/LB9 cars, with whichever crank bolt pattern your motor has. (86 was the changeover year, but it'll be a function of your "mild" 350 and what block it's built out of, NOT the wrinkles in your sheet metal) Those are the "lightweight" stock ones, which is all you'll need. A stock clutch should be fine.

Don't outsmart yourself with a bunch of "race" parts that don't match the rest of the program.

 

The best thing you can do now is take it apart and see what failed and how it looks. Post some pictures and then decide what you need.