I decided To buy 1st edition SR. my group has done pnp rpgs before but im the only one who has been into shadowrun and never played an actual game.

we're reading over the book and finding it to be flavourful, but the rules to be confusing or vague. we're actually having all sorts of problems fully grasping the rules. should we give up and get a different edition or try to run our game using this cheap 1st edition rulebook.

one thing to keep in mind. the next editions are all 40-50 dollars. the money is mine and my group isnt committed yet to SR because they've never played the game or felt the universe. so getting 3rd or 4th could be a waste of my money unless you guys really feel 1st is a waste of time.

so what should i do?

If nothing else, try it for a lark. It'll at least introduce your group to some basic concepts if you decide to play 2ed or 3ed. 4ed is way different, so you might 'cause some confusion if you're going straight to that.

First edition had... issues. This is not to say that later editions didn't have issues, but first was definitely up there for oddities. My suggestion to you would be to dig up either third or fourth edition, with the thought in mind that fourth ed is the one currently being supported.

The 1st Edition is, poorly organized.

You'll have to dig through several sections to find some rules, especially on magic.

If you have the 1st Edition hardback, first printing (I don't even know if there were successive printing), then watch out:

It fails to mention that if your Essence drops to 0 (usually from cyberware implantation), you're dead. It just skips that part.

Also, the costs of Power Foci were, I believe, 10,000 nuyen per force point.

My first mage took a Rating 10 Power Focus to start the game. Whee! No bonding cost! (It was only that low because I'd bought Platinum DocWagon, a buddy, and a bunch of contacts. If I'd been a little smarter, I'd've bought it to Rating 30 and just dumped the other stuff.)

Increase the cost of Power Foci to 100,000 nuyen per force point (or you can be cheesy and do what 1st Ed. Grimoire did and up the cost to 105,000 x force).

While you say it is expensive I'd say go with a 4th edtion why learn 2 sets of rules for the same game and this way your playing the current edtion.

But first edition had wonders such as armored jackets that let you bounce anti-tank missiles off your chest! I will say that the art of 1st edition is probably the best of all the SRs.

1st Edition holds a wonderfull atmosphere, to me (and then it makes me feel nostalgic, too). The Scenario in the back is fun (and can easily be adapted to later editions). But IIRC (I only participated a few times as a player, untill 2nd Ed came out), the rules really sucked.
If you like digging through new (or in this case old) mechanics, like I do, I´d say give it a try to see if you like the genre & game-universe (though its a bit different in 3rd and more different in 4th Ed). Since you mentioned having troubles getting through the unorganized rules though, I´d really suggest getting another edition (I´d pick 4th, though some don´t like it, because it is much different in some aspects from previous editions, but that shouldn´t be a problem for beginners).

EDIT: Be warned, though, much of SR4 core-books art is horribel! (It is very good in the first 4thEd rules book as I hear, though).

I think the real question is what does your group enjoy? If your group enjoys hack and slash, I'd tend to say avoid it. If your group enjoys a colorful world and can make up where the rules get too confusing to follow, definitely go for it. It doesn't sound like you're willing to make the time investment to REALLY learn the rules, so accept now you're going to have to gloss over things you don't have time to thoroughly research.

If you love SR first ed is a fun read with lots of atmosphere but for goodness sake don't try to play it! Issues? please! to be fair I think they tried to allow for all sorts of rl stuff but the effect was to make the rules cumbersome. ironically the more rapid fire you weapon, the slower the play.