I bypassed it Rev, i just couldnt find any pinches or exposed wire but i did look for a while...

the water that comes out of the tailpipe is only right at 1st in the morning and it does go away immediately and then the steam is gone by the time i pull out of the complex parking lot.

I did find that info earlier on P0420...so what should i try 1st, the cheapest part like O2 sensor or just go for having cat replaced off the batt

I know this is going to sound redundant but, you know you had a short in the main harness to the PCM. That harness contains all the input/output wiring to the PCM to include the O2 sensors. If you still have other effected wiring within that harness you will eventually have to track it down and fix it to remedy the current problem or at least eliminate that as a potential source. Otherwise you'll just wind up throwing parts in that you really don't need and wont fix the problem.

I had a P0420 on a Windstar 3.0 engine and found that the sensor was lazy. Replaced the precat 02 sensor and have not had the problem since.