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im ready to start welding in some frame supports and a cage. which points are the best for reference? are there any lines on the car that are level? on a vega wagon

put it on stands at 4 corners under the frame if you want to call it that or front horns and rear control arm mounts. open up the door or remove the door makes it much simpler to work on and use a 3ft level on the door sill for front to back. Then you can use a 3 or 4 ft level on the rear floor above rearend to get it level side to side. I also check side to side on the front frame horns up by radiator support.
Good surfaces to check from and your level will sit on the flats. You can always refer to the vega frame dimensions and add the differance for how high above the floor you put it...but for what your doing this will be fine. If you set it up level to begin with you can check your work with simple tools like a plumb bob,square,level,etc.

should the motor and transmission be in the car before i start welding in frame rails and a cage?

no, thats not needed to be in

Hey Flowerz489,

If it were me, while you're leveling it, I'd make sure you have the full weight of the car ON THE TIRES and the TIRES on level footing.
If you have any rake to the car, leveling the chassis will not match how the car sits on level ground.
(ie, imagine you have 4 blocks that are shimmed/heightened and level to one another)
You could do this simply by laying a straight board or steel between each block and using a level, get them all in.
Once all 4 blocks are true and level, the natural rake & weight of your car will be factored in.
This way your frame connectors will be welded into the chassis in the exact condition the car sits on level ground, fully seated on the ground as it would being parked with your rake.

That's just my 2 cents.

Mike