Question:
1.) The SRAM we are using is dual ported and sometimes the C80 will not get access to the memory immediately. I need to hold off till it can gain access. Can I do this by controlling the "ready" signal?
2.) I will have some memory on board that is exclusively for the C80 to use such as data and program memory. Should I use SDRAM for this or SRAM.

Answer:
1.) Yes, the "READY" signal can be used to hold off the memory cycle of the C80 when using dual ported SRAM. This can be done in either the R3 or R6 states. You need to be careful not to tie up the external bus too long in case more urgent requests need to be processed. There is no limit on how long the READY signal can be held low.
2.) I would use SDRAM since the C80 is basically a direct connect with SDRAM. An SRAM interface would require some additional glue logic.