Is this bar supposed to be bent like this?

I definitely agree. That bar should be straight, with no bends at all. The surface rust is normal, it's all unprotected metal.

IMO, your dash got bent from the impact. Take a look at this photo:

http://pg.photos.yahoo.com/ph/xray328/detail?.dir=fc93&.dnm=55d5.jpg&.src=ph

In the lower-right, near the dash vent, there's a crease in the tan part of the dash. That shouldn't be there, either. Looks to me like the accident pushed the passenger compartment in on that side, and bent your dash. :(

I hope I'm wrong, but that's my $0.02.
 
Thats what I figured. I saw the indented part of the dash and it is infact broken under that area. O'well, guess its time to find a new one. I saw them on stangparts.com for $400, anyone know where I can get one any cheaper?
 
Yeah everything else is ok. The car is repaired and I ended up putting the Cobra kit on it. It looks good from the outside anyway. Theres pictures of the accident damage on that link as well.