Ok, I finally had a chance in between rain showers to grab some pictures of the fenders to show the SVO notch.
SVO fender, if you look at the small crease down to the bottom lip of the inner wheel well lip you will see that the metal steps back to allow the front bumper cover to wrap around and attach to the fender.
1982 Mustang Fender, if you look at the same portion of the inner wheel well lip you will see that it is smooth all the way around without the notch.
So Mike's SVO86 was Right and I was WRONG! Man I hate getting old!