It matches them as 1st cousins and me as 1 to 2 cousin to my aunt bit confused is this right
The reported relationships are only estimates based on the amount of shared DNA and then slotted into very broad categories. Ancestry don't have a category for every possible relationship and can't know what the actual relationship is, so look at it as a very broad "guide".
If you have a look at the table here:
http://isogg.org/wiki/Autosomal_DNA_statistics you will see that the expected amount of DNA can be the same for several different relationships. For example, the expected shared amount is the same for first cousins, great-grandparent/great-grandchild, great-uncle or aunt/great-nephew or niece, half-uncle or aunt/half-nephew or niece. And these are just the expected amounts - the actual amount will vary which might result in the match being put in to a lower or higher category than expected.
Placing your half-aunt in the estimated "1st to 2nd Cousin" range is pretty much what you would expect to see.