Did i buy the wrong derailleur? (mech hanger/direct to frame) I'm a total newbie with bike repair and  I can't figure out this hanger/direct to frame business. Googling doesn't help much. 

Here is a picture of the current derailleur and the new one I bought. The mount doesn't look the same. I was wondering if it could still work or if I definitely need to exchange the one I bought for a more appropriate one.
It appears from your photo that you indeed have the wrong style derailleur. Your frame appears to have vertical dropouts and a frame derailleur mount. The derailleur you purchased is designed for a frame with horizontal axle slots. Since the derailleur hanger mounts under the axle nut your frame doesn't have a slot big enough for it to fit.