Welcome to CHR!
The 79 -81 Camaros are somewhat like the red headed step child that nobody really wants to own. It’s unfortunate as they are good looking cars and can be made into performers – but there are a few things that need to be considered.

Before you touch anything, make sure that the car is exempt from any smog/DEQ/Air Quality Board regulations that prevent modifications to engine and drivetrain. If you’re good-to-go, I’d start much like Tech has recommended at the rear end. If you want to go with the 4 speed (more on that below) you need to change out the current 3rd member as it in all likelihood a PC (3.08:1) or PE (3.42:1) code. Here’s the rear end codes so you can verify:
PA 2.73:1
PC 3.08:1
PE 3.42:1
PF 3.73:1
PH 2.56:1
PJ 2.41:1
PS 2.41:1 Locking
PT 2.56:1 Locking
PU 2.73:1 Locking
PW 3.08:1 Locking
PY 3.42:1 Locking
PZ 3.73:1 Locking (Z-28 4 speed option only)

If you have a PY – that’s a good thing and you can just swap the gears. The 8.5-inch will withstand some abuse as it shares the same pinion shaft diameter as the 12-bolt rear ends it replaced. All ratios above 2.73:1 can be swapped without having to change carriers. GM factory gears stop at 3.73, but Richmond and others make some pretty big ones if you really want to launch. I think 3.73 would be okay for a street vehicle, especially with a good 4 speed.

If the transmission you have access to is a Super T-10 that’s a good thing. It’s a strong transmission and will handle 400 horsepower. They’re easy to identify by the code on the driver’s side of the case – vertical stamping with codes as follows:
W = Borg Warner
2nd position – Month, A-M (letter “I” not used, i.e., A=Jan, B=Feb, C=Mar, etc)
3rd position – Day of month, 1-31
4/5th position – Year, 4=74, 5=75, 6=76, etc. through 0=1980. 1-4 are reused for 1981-1984
Last position – Shift, 1, 2, or 3

The compression is the '79 350 is 8.2:1 – not the greatest; however, a good set of headers, Flowmaster 40 series mufflers, and replacement of the stock computer controlled ignition and Q-Jet (again make darn sure you can make these modifications!) with a stock GM HEI (vacuum advance) and a rebuilt non-computer controlled Q-Jet on the stock manifold will give you a jolt in the pants. Do not mess with the cam – big bozo no no on this engine as anything more than stock will give you a bog-dog and really disappointing performance.

Set the initial timing at 8 degrees and allow the distributor to do the rest and then drive the pants off this car. It’s old enough to have some swagger and the above will not break the bank yet give you some great hot rod experience and provide a lot of fun.

Let us know what you decide and once again, welcome to CHR!
Glenn