Or do I have to find it?
I'm only on day 2 and already I'm running out of ammo. It's a bid ridiculous if I can fly in mercs but can't buy a simple box of bullets.
This is for JA1 btw.

In JA 1 ther isn't any way to buy guns or ammo. You've got only what you can find.

Well that sucks. My guys can't hit worth a damn and even when they do it sometimes takes like 6-7 rounds to bring down one guy. Usually at least 3-4. Suppose I have to be more conservative.
And btw how do you use grenades? Just throw them? Because I threw a grenade and it landed right on the guy and then it did jack all. Granted it was in poor condition so maybe it failed to detonate or something? I don't know.
What's also annoying is that when Mercs leave they take their stuff with them. Like I bought that Biff guy I think I gave him a locksmith kit I found then after day 1 he freaks out and goes back to school or something and takes the unique item with him. Stupid Gary ran away too. Oh well . .

If you have trouble take a look at thoose guides:
http://www.gamefaqs.com/computer/doswin/file/565057/2091
http://www.thecomputershow.com/computershow/walkthroughs/jaggedalliancewalk.htm

Thanks. Yah I made the mistake of not aiming better, I was just firing from the hip so I wasted a lot of ammo. I did pretty good the first day but this second day I've only got 4 gunmen cause I put 3 in the hospital and one guy left so now any sector it's like 4 guys vs 6 bad guys and it's not going too well. Plus my guns are jamming all the time, especially the semi-automatic.
I dunno, game's not bad though seems inferior to Xcom 1+2

Honestly, move up the line and pick up JA2...THAT one is a true masterpiece.

In JA1 the 1st day or so you can only equip your guys with simple revolvers and grenades if you find them.
Everything has to be in good condition in order to work, especially weapons.
The more damaged things are, the bigger the chance it will malfunction.
That basically forces you to have 1 guy doing the repair work, starting from day 2.
Sometimes you might even be in need of a 2nd guy for repair work.
If you have a lot of guys in hospital, assign 1 to doctor if possible.
You have to choose a good team to start with.
I always started with Ivan (good aim), Fidel (good aim and explosives) and Speck (cheap and good repair) and often chose Ice or Wolf (both descent mercs with good price/quality) as addition.

I wasn't sure what the money situation was going to be like so I got a bunch of cheap buggers. I grabbed 8 guys and I think my original team was:
Budd, Gary, Larry, Beth, Biff, Eli, Tex and Wink. Then Gary and Biff both left and I got Hurl and the native guide Elio. Like I say things went okay the first day, second day not so well. Maybe I'll just restart. Though I've playing Xcom2 instead past few days.

I always start JA1 with 4 or 5 mercs.
You get Elio day 1 or 2.
He's useful as mule, nothing else.
Search your starting sector on day 1.
You'll find some ammo, a crowbar, 1 or 2 vests, 1 or 2 knifes and perhaps a gun.
It's been a while, so I can't remember.
I do remember you can leave 1 guy without a vest at start.
Use Speck as mule on day 1, don't bother getting him into a fight as he's useless for that.
Better have 3 good fighters (Ivan, Fidel, Ice) and 1 or 2 mules.
You might consider Jimmy from the start as well as he's good with locks.
Get your economy going quickly as workers cost money too.
Sectors are easily accessible over land, but harder over water.
That fact helps defending and attacking!

Btw if I ever get through JA1 I'll pick up JA2. I like to play stuff in sequence though. Right now i'm back to dabling with xcom2tftd. So I'll get back to JA1 sometime or other.

There's no reason to play in sequence, the stories of the JA games are totally separate with no connection between them. JA2 is better in all respects than it predecessors, the only thing the earlier games have going for them is the missions in Deadly Games, which give you more interesting objectives than just 'kill everybody'. Seriously, just skip over to JA2.

If you want to buy ammo play a different game. By the way, if you search every part of every maps, you will find plenty of ammo in the boxes, and elsewhere too. Even on the very first map you find alot of boxes of S&W bullets in a building. There is no way one 'normal' person can run out of ALL the ammo.
PS: I hope you found the screen where you edit your mercs' items,....

If he's shooting out of his mercs' line of sight and doesn't take a bit of AP to aim - it's not totally impossible...
Using F9 to toggle between the selected merc's sight and "team view" helps a lot. Also - Enter to switch between seen targets.
I think he was referring to the fact that some mercs might leave in certain conditions... in which case - they take the stuff they had.
So, yeah - it's a lot better to restart the day.

This one is easy to miss, but critical: on the map screen (before the day starts, where you place guards and sappers, click on the $ button in the lower left corner and then on an avatar of your merc. This opens an inventory screen where you have access to the stuff in your home base. There are a few vests and 30 boxes of SW ammo you can give your mercs. This should make the first few days more managable.

Also Ill add, as a brand new player, the first sector (without any enemies) has boxes of ammo in the buildings. Also has a key that unlocks a building just south of it, which has a tool-kit. With just a little exploring you should have more than enough ammo for everyone.