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L98? with that budget- buy yourself a new exhaust system...
You'll spend probably all of the 800. But if you do the work yourself You'll be able to come in under budget, and have a HUGE (anywhere from 40-60 HP i'd guess) power gain.
LT headers, true duals, and performance mufflers...
Yes you can buy all that for WELL under 800...
at least that's what I'm going to do with my '85 L98...
The filter, air foil, and smaller items mentioned above will help slightly- bit by bit.
Stay away from NOS... IMHO
I agree, Headers and a good exhaust system will give you the most bang for the buck. I also have an 86 & it is mostly stock, but off the line , it will blow away most performance cars on the road. Only problem is that the motor runs out of steam about 4800 rpm. A good set of headers will help that. The smart bet is to enjoy the car as is and save the $800 for repairs. You're gonna need it!!!