As I said in the welcome post, sounds like the throwout bearing for the clutch

. Are you just going to replace the clutch and keep the SROD? If the synchros are shot, then it's like just throwing money away because that clutch won't work with the T5.
Keep in mind that since your engine is a pre-1982 your engine has a 28oz balance, so to get a later model 86-93 clutch you will have to find a 28oz internal balance 10.5" flywheel or you will have severe vibration issues. The 82+ 5.0 engines have a 50oz balance, so that might present a small problem. This only applies for the T5 swap though. Or you could swap in an 87-93 long block with a carb on top, then you will have a huge increase in power right out of the box as there would be included better heads, cam, and internals than what your 79 engine should have.
Personally, I'd just save up for all the right parts to do a T5 conversion. If you're resourceful you could find them fairly cheap.
SS