What should I do w/the transaxle
 

When we bought our 87 N/A car, the PO gave us the original transaxle (TA) that he busted from dumping the clutch. The car has a rebuilt unit ($2k ouch!) that was installed a few years ago so I don't see the need for keeping the old TA around just for parts.
Should I replace the busted ring gear and sell it, sell it as a core (if its worth anything?) or should I use it for a boat anchor????????

It probably isn't worth rebuilding - you will pay as much in parts as you could get for a good used one ($500 - $700).

I would keep and play with it

or

Throw it on ebay and see what happens.

AFJuvat