Is a 500GB Hard drive faster then a 80 GB hard drive?

Depends, if the 80GB have the data more organized that the 500GB, the 80GB could be more faster, or the contrary. In other words, if the 80GB is less fragmented that the 500GB, the HDD with less data fragmented is more faster.

Alright so the 500GB and 80GB will be exactly the same till it goes past 80GB then the 500GB will take longer to acess things past that right (If it is something that I have not used in a while and it is past the 80GB part on the 500GB)? Sorry for being so confusing I am having trouble explaining what I am trying to say.

500GB, more capacity means less seeking if u use only 60GB. Plus a 500GB disk is of a newer generation than 80GB disk; so the data density is like 4 x higher and thus the speeds as well.

Right, in this case the speed depends from the used space, obviously the 500GB is more faster that the 80 'cause have more cache memory, and the data are save in the firts clusters of the disk, while in the 80GB the data are save in the cluster that have space available.

500GB disk would have 250GB platters
80GB disk could have 40GB platters, meaning more than 4 x higher data density for the 500GB. This means the 500GB is about 4 x faster as well, in sequential transfers.