Just confirmed it.. It is in fact equipped with Cali. emmisions! Sh*t and to think they charged an extra $170. for that and give a less warranty.
I just looked at my 1998 Warranty guide to make sure I wasn't feeding you misinformation. My guide clearly states that cars equiped for sale in California (California Emissions) have a cats warranty of 7/70. You should call Ford to confirm this, but it is in "black and white" as they say. But, a dealer might overlook this fact and fix them anyway.
Oh, get some headers if you have to pay. Might as well benefit from a power increase if you are going to spend the money.