Okay!
It looks like things are now good. After putting the new exhaust manifold on, taking it for a drive, and seeing some red again I replaced the intake manifold gasket and the fuel injectors. What a job! Not as bad as the exhaust manifold and CAT but so many electronics and everything is in the way.
The intake manifold gasket was completely flat (Level with the intake manifold itself). It was sucking dirt in and oil was everywhere:
I do not know if someone over torqued it, tightened it down at some point, or it was just old, but it was not doing anything at all. The center of the gasket was the worst.
Like I said while I was in there, I put in some AUTOLINE refurbished fuel injectors from rock auto. I should have primed it more because when I started the vehicle I thought I forgot to plug something in, it was missing pretty bad but smoothed out almost immediately. The line must not have filled on the first two key turns that you do just turn the pump on and check for leaks.
Man, the vehicle runs so smooth now. This has had to have been a problem since I purchased the vehicle. Everything I do to this car, it gets more and more smooth. (The biggest change was the motor mounts.)
The first thing I did was take it for a 30-40 min test drive to check the exhaust manifold heating issue. Something was STILL THERE :/
So, after thinking about it for a bit (If I remember correctly) the glow was very different after doing the exhaust manifold: it was less, and the glow looked different. Then after doing the intake manifold it was less also...it got me thinking about the heat shield.
I used the old heat shield when installing the new DORMAN manifold because the DORMAN heat shield packaged with the unit did not fit the new manifold well. The o2 sensor hole was skewed and the old heat shield fit so much better.
I needed to torque the exhaust manifold bolts one last time anyways so I took the old heat shield off the new manifold, torqued it, and drove it for about 30 mins with the heat shield off. No glow.
Coming back I inspected the old heat shield and now realized that it was largely bubbled very far out and there were scorch marks on it from when it was touching the manifold! (the fully overheated manifold must have destroyed it) I took the new manifold heat shield, dremeled out the o2 sensor hole, put some nuts as spacers on the new exhaust manifold and attached the new manifold heat shield on to it.
It does not glow at all anymore! This issue has been solved. We have went from a 100% cherry red exhaust manifold to a normally functioning one.
Thanks for all the help everyone. I may do another back pressure test when/if I purchase a back pressure tester and I think I will be using the bore scope to further examine the exhaust. I will have pictures of the manifold and the CAT up soon, just need the time to take them.