Ive got an older B&S 5 HP Model 130252 on an Atlas snowblower.... A few years ago the engine stopped running so when I had the opportunity to take an engine repair class i took it... Long story short I took the engine completely apart put it back together and the engine now runs great... I was out this evening snowblowing with it and it was running great just seemed extra loud when i looked at the exhaust it was glowing red... Im not sure if looked more red because it was dark and cold but something told me it shouldnt be doing that...Is this alright?? if not any suggestions for repair?

It's not unusual for the muffler to get red hot. Mufflers are generally mounted directly to the exhaust of the engine, if there is not exhaust pipe then the exhaust does not have a chance to cool any and will make the muffler red hot. It's pretty hard to tell in the daylight, but in the dark you can usually see it pretty good.

Alright... Do you think I would cut down on the noise with a new muffler? I mean the one on there right now is pretty rusted out.

If the baffles are rusted out, then a new muffler may cut down a little on the noise.