[CaffeineTripp]

Cheapest and best upgrade to get you to 200+ HP? Drop in a 5.9L Magnum V8. You'll need the proper ECU for a 5.9L (the 5.2L ECU will also work if it's not the exact same), and to add the two extra injector wires.

You can also use the 5.2L (318) Magnum.

Try to get a motor out of a 1992 or 1993, those had slightly larger exhaust manifolds and for only 200HP, should do nicely. Supposedly, the 5.2 is 230HP (ref: http://www.allpar.com/trucks/dakota-1987.html ).

RwP

Though that is the best way to make power, it seems that an entire engine is going to be a bit out of their budget.

 

[CaffeineTripp]

Don't know if your 200HP goal will be met then. That's a decent increase of 50 HP (drivetrain loss and all taken into consideration).

In any case, first thing's first; make sure the engine is in perfect running condition. Right now that's the best thing for it if you want to meet your goals down the road. Modifying a worn engine will do more harm to it and will make reaching your horsepower/torque goals that much harder.

Start off with the basics; fluids, plugs/wires, run SeaFoam/water through the intake to get rid of carbon deposits, fix anything that's broken (vacuum hoses, gaskets, bearings, bushings), etc.

Obtaining your goal can happen, but it's more effective to save for better parts.

 

[CaffeineTripp]

i have a 3.9l dakota and need some ideas to make over 200 horsepower on a part time job budjet, i have a glass pack and a spectre filter in the mail. and an AC delete, will the catylitic converter delete help or hurt, and will a v8 throttle body help or hurt? and insight is much apprieciated.

200 should be pretty attainable with minimal upgrades. But they will be a bit expensive. Ditch the glasspack and go for something that will sound nice and give you a bit more horsepower. I would recommend Gibson, Magnaflow, or Flowmaster. ~$150

Depending on how you want to delete the cat, check your local laws, many states have laws against removing the catalytic unless the vehicle's purpose to not be driven on state roads anymore.

Swapping to a bigger throttle body will help, but make sure you port match it to your intake manifold or you'll be doing more harm than good.

Is the air filter a panel filter or a cone? Either or, nab up an intake pipe for a 5.2. You may be able to use the stock airbox, which would be recommended to keep the heat away from the filter.

In any case, I wrote a decent guide, and another here, which should do well for what you're looking for.