hi,
i got some wheels that are 120mm and my frame is 130mm so i need to add spacers, and i was wondering if i can just use 5mm of washers on each side or if i need biking specific spacers. if so, where could i get those online?

You can probably get some for little to nothing at a bike shop or co-op

Yep, If you go to your LBS they should have spacers that will work perfectly for you. If anything, And your LBS doesn't have it. Look through universalcycles

They'll have it if not, Call them. they'll still ship you some from there LBS

Im wondering what kind of problems i would run into squeezing the drops onto a smaller hub??

Wut

Oops i was a little rushed posting from my ipod and forgot to sound coherent... What i ment to ask is what negative things happen when you squeeze the drops onto a much smaller hub??

If it is a steel frame, then it's probably okay but I wouldn't do it because it will put a lot of stress on the track nuts and it could slip when you're bombing a hill.

I used a 120mm hub in a frame spaced at 126mm for close to two years with no problems at all. No slippage, no bending, no broken dropouts or anything like that. I didn't baby it either, the bike eventually got retired because I managed to buckle the top and down tubes. The rear triangle was still intact though.