Just bought my first Foxbody, I think I screwed up big time.

Sure sounds like the driveshaft. If it's the balancer even at idle it would be shaking pretty good and if that's the case do not drive it. I'd have the former owner help you install the new driveshaft. Hang in there, you'll be happy soon enough.
 
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So, with it in 5th gear where the vibration is strong. Kick the clutch in and shift to nuetral. Does the vibration immediately stop?


Exactly what i was going to ask. If the vibration continues with the car in neutral, then it's in the shaft/rear end. If it stops, then it's in the trans. My car had a bad vibration when i first got it and i traced it to the drive shaft and fixed it with an aluminum FRPP shaft.
 
So, with it in 5th gear where the vibration is strong. Kick the clutch in and shift to nuetral. Does the vibration immediately stop?

Yes, the vibration starts when I shift into 5th, and its stops if I go back to 4th.

But the big news is, I guess I wont be keeping the car !
I went this morning to DMV, got a temporary tag, went to the emissions testing station, and guess what, the car failed emissions.
Oh Great, so I'm thinking this is going to cost me more cash to get it fixed. I called the shop where I get my wifes car worked on since I know nothing about emissions stuff.
The guy tells me, don't spend any money to fix it till you talk to the seller. Aparently in Colorado there is a law that says the seller is responsible for making sure the car will pass an emissions test. He should have it tested before he sells it, but he's still on the hook for making it pass if it fails when I try to get it smogged. I didnt take the mechanics word for it, I called Colorado DMV and talked to them about it. They said they couldn't tell me what to do legally, but they confirmed what the mechanic said.

SO, I called the guy I bought the car from and let him know that what the DMV and the mechanic told me. Before I could ask him how he wanted to handle it, he just says "you know what?, I'll just give you your money back" " I didn't think it would be a problem, but just bring it back and I'll return your money."

Tomorrow after my wife gets off work we will make the 1hr drive back to this guys house and return the car.
Kinda sucks, I was digging the car, looked nice, great power, but I was already regreting the purchase because of the vibration thing, and then it wont pass smog.

I learned a thing or two on this deal, for one the dmv recommends that when buying a used car you should have the seller produce a recent emissions test, or have him test it before you buy it. And I learned that in the future I should take a longer, more extensive test drive before I lay down my cash.

I'll keep searching for a nice foxbody, maybe I'll have better luck on the next one.
 
You lucked out on this one. I know and have dealt with quite a few guys who would have told you to go Yuck Fourself and all sales are final. Good luck finding another one, there's literally a million of them out there.
 
Yes, the vibration starts when I shift into 5th, and its stops if I go back to 4th.

But the big news is, I guess I wont be keeping the car !
I went this morning to DMV, got a temporary tag, went to the emissions testing station, and guess what, the car failed emissions.
Oh Great, so I'm thinking this is going to cost me more cash to get it fixed. I called the shop where I get my wifes car worked on since I know nothing about emissions stuff.
The guy tells me, don't spend any money to fix it till you talk to the seller. Aparently in Colorado there is a law that says the seller is responsible for making sure the car will pass an emissions test. He should have it tested before he sells it, but he's still on the hook for making it pass if it fails when I try to get it smogged. I didnt take the mechanics word for it, I called Colorado DMV and talked to them about it. They said they couldn't tell me what to do legally, but they confirmed what the mechanic said.

SO, I called the guy I bought the car from and let him know that what the DMV and the mechanic told me. Before I could ask him how he wanted to handle it, he just says "you know what?, I'll just give you your money back" " I didn't think it would be a problem, but just bring it back and I'll return your money."

Tomorrow after my wife gets off work we will make the 1hr drive back to this guys house and return the car.
Kinda sucks, I was digging the car, looked nice, great power, but I was already regreting the purchase because of the vibration thing, and then it wont pass smog.

I learned a thing or two on this deal, for one the dmv recommends that when buying a used car you should have the seller produce a recent emissions test, or have him test it before you buy it. And I learned that in the future I should take a longer, more extensive test drive before I lay down my cash.

I'll keep searching for a nice foxbody, maybe I'll have better luck on the next one.

Given your states need for these cars to pass emissions and your lack or mechanical skill you might find it more rewarding to find a newer model year to own. The youngest Fox Chassis Mustang is now 19 years old, even the well cared for ones need things from time to time. I am not trying to discourage you but I have seen this happen to a good friend, he bought a 87 LX that needed a few things and he quickly realized he was in over his head, regreted buying the car and got him all upset.
Bottom line- I love these cars and enjoy seeing other people love them. They are simple to work on, if you don't understand how to fix something you can go online and grab some tools and figure out most anything on the car.
 
Now you know what to look for. I'll bet the next one will be much better than this one. Now go find a mint FOX, go through the entire vehicle, have the owner provide records, take it out on a long test drive (even the highway), check for rust on the strut towers (under the master cylinder), etc.

Post pics even before you buy and post them on here so we can help.