First Project Car.

I dont need to go nuts with power. This is a weekend hobby/ learning car. We want something better than stock but something that won't take us over 350 tq. From what I've read that's what the T5 is rated for.

A T5 is rated for 300 tq for normal operating conditions, any abuse and your guess is as good as mine as how it will hold up. The 2-3 shift is when it breaks. A short throw shifter with properly adjusted stops can help prevent this.

As for the power level you are looking for, go to junkyard and find a used explorer intake. Buy a set of used aluminum heads, trickflow, afr or edlebrock. Use the stock cam, upgrade the throttle body, mass air, and fuel pump. No tuning needed. Have fun.
 
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Those have the 300 ft-lbs gearset. You'll also need to change out the input shaft for fox usage
Yup. New input bearing, shaft, and steel retaining sleeve.
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