To be more specific, the only HVAC function that closes the outside air door is MAX A/C, which then recirculates cabin air to lessen the cooling load and cool the cabin more quickly. For all other HVAC functions, the outside air door is open.
If the Mystique is similar to the Contour, and it damn well should be, the plastic cowl at the base of the windshield should have some slots on the drivers' side, forward of the driver's wiper arm, this is the cabin fresh air intake. Air flows through these slots and under the cowl across to the passenger side where the cabin air filter and cabin air intake is located.
If you're getting engine compartment fumes into the cabin air intake, it is very likely that the large rubber gasket that seals the back of the hood is missing or damaged.
Random picture from the Intertubes. The gasket is clearly visible at the base of the Black plastic windshield cowling, just forward of the wiper arms, and stretches from side-to-side under hood. It needs to be there and be undamaged or under hood air will exit right over the cowling and you'll get to breathe it whenever you're using the cabin HVAC.