As stated above, the 350TPI would be a great swap...or even what I've done and do a 383 swap or you could even go up to a 406TPI. That'd be a monster...my 383 is pretty nice. However, again, if you're just looking for a little omph the 305 isn't a bad motor, but you're probably not going to a great deal out of power.
I'd definately start with the suspension upgrades such as SFCs, panhard, LCAs, STB, and torque arm. Those will all help with how your car handles and performs. Also, a nice set of shocks/springs will help also.
To spruce up the 305, several of the 350 parts are interchangeable. If I was going to give the 305 a little more omph, I'd start with the exhaust. Put a new catback and some nice headers. Mid-length/long tube...not really going to make much difference with the TPI setup since the torque band is so low and they run out of breathe up in the higher RPMs. As for the induction part, there are also parts available to help it out. You can put a CAI on it as well as change out the runners to the SLP style and upgrade the intake. I run SLP runners and an Edelbrock TPI baseplate on my 383. I like them. When you put them on, port them out first. More air...more power. Also, put the airfoil in the throttle body to help with the air coming in.
To the block itself, you can free up some power by adding an electric water pump and upgrade to a set of 350 cylinder heads. Preferably the Vette 113 casting aluminum heads. Either way, have them worked first. Throw in a new cam and some 1.6RRs. There are also the "Free" mods like the Throttle Body Coolant by-pass, smog delete, and a couple others that'll help. Then, with all of that done you'll need a good tune on it to make sure it all works as efficiently together as possible.
Another question as mentioned before...manual or auto? If you've got a manual you can always upgrade the clutch and that'll help some. If you've got an auto and you're just making a street cruiser you can put a S10 torque convertor in and it'll function as a stall for your 305. The stall will help also.
I'm willing to bet that if you did some of this you'd have a very nice 305 that would suprise a lot of people. IMO that is a little more important to me than necessarily beating them. I like seeing the look on people faces when they expect to spank you and they don't. It's always nice to win though.
Hope this helps.
BTW...welcome to FBO.