Engine Hoist Too Short

[nullshine]

the ram should drop into the cylinder, pitching the arm down like 45-60 degrees. If it doesn't drop into the cylinder, the shaft is bent or?

X2. There should be a release valve at the base of the bottle jack that will drop the arm down some more. Check the instructions sitting on your fender for its location. You may need to apply some weight to the crane's arm to get it to drop once the release valve has been opened, especially since it's new, sometimes they get a bit sticky when new. There's lots of chrome showing on that cylinder shaft, it should be able to collapse down until the painted end of the shaft lines up with the paint on the body of the bottle jack. Should give you plenty of room to work with.

What do I do? I guess I just wasted $130. Sometimes I wish I would get hit by a truck or something.

If you try lift that engine out without the legs on the ground you're gonna get your wish!
Calm down, have a look over your instructions, and be careful. Consider the whole process, from lifting the engine out of the engine bay, to getting the engine on the ground. And yes, definitely lift from the front! Let us know how it goes...