I did this proejct a while back but it was more complicated then this.. but here are the sites I came across and thought theyr were good...
http://www.stevespanglerscience.com/experiment/00000246
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http://exploration.grc.nasa.gov/educati ... ktfor.html>.
And here was more info if it helps.....
Research
For the balloon car project the following ideas were taken into consideration:
· Forces: are vector quantities having both a magnitude and a direction. When describing the action of forces, one must account for both the magnitude and the direction. In flight, a rocket is subjected to four forces; weight, thrust, and the aerodynamic forces, lift and drag.
· Thrust: is the force, which moves the car through the air, and through space. Thrust is generated by the propulsion system of the rocket through the application of Newton's third law of motion
· Aerodynamic forces: are generated and act on the car as it flies through the air.
Benson, Tom. ‘Four Forces on a Rocket’.
http://www.nasa.gov/. November 15, 2006. <
http://exploration.grc.nasa.gov/educati ... ktfor.html>.
· Weight: force caused by gravity: the vertical force experienced by a mass because of gravity. Symbol W
· Force: influence that moves something: a physical influence that tends to change the position of an object with mass, equal to the rate of change in momentum of the object. Symbol F
· Drag: resistance to motion: the resistance experienced by a body moving through a fluid medium, especially by an aircraft when travelling through the air. Symbol D
· Lift: upward force acting on an aircraft: the combination of forces that act to cause an aircraft to leave the ground and stay in the air
· Torque: rotating force: force that causes rotation, twisting, or turning, for example the force generated by an internal-combustion engine to turn a vehicle’s drive shaft
· Aerodynamics: study of objects moving through air: the study of moving gases, especially the study of the forces experienced by objects moving through air
· Friction: resistance encountered by moving object: the resistance encountered by an object moving relative to another object with which it is in contact
Encarta ® World English Dictionary © & (P) 1998-2004 Microsoft Corporation
· Newton’s Third law: ‘for every action, there is an equal and opposite reaction’. This law works when two objects are interacting with each other, where they create something called ‘forces’. The first force is an action, and the second force is the reaction to the action. There are many natural forces at work when objects interact, such as friction, tension, gravity, and magnetic forces.
Henderson, Tom. ‘Physics Class, Lesson 4: Newton’s Third Law’.
http://www.glenbrook.k12.il.us/. 1996-2004. December 1, 2006.
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http://www.glenbrook.k12.il.us/GBSSCI/P ... u2l4a.html >
How these Concepts Applies to the Balloon Car
· In the case of the balloon car, the force is the air coming out of the balloon. The reaction is the movement of the car- the air in the balloon pushes the car along. Also, the wheels of the car help the car move by reducing friction the car would have with the ground, and provide stability by keeping the body of the car balanced.
· Reducing the area of the car that is hitting the air directly reduces the drag.
· Reducing the friction of the axils will give a the car a more smooth ride which should translate into faster speed

hope this helps