I think it looks just fine. It should do well in the ground, but will probably get larger than 5'. Good luck with your endeavor!

Put that sucker right in the ground! When you backfill the hole...water in the soil really well. You must make sure the rootzone is wet and there are no air pockets. Kill or pull those weeds or whatever that is growing at the base of the trunk.

Thanks for the advice!!! I was recently told on here that tags on plants at big box stores are usually misleading, so i have just learned that :) ill plant it in the ground then next weekend. And when i do the back fill can i mix some miracle grow in with the regular soil?? And how big of hole should i make??
Thanks for the advice about taking out the green stuff growing in the bottom of the pot. I will pull that stuff out tomorrow. I didnt know what it was and most of the trees there had that stuff growing in the bottom of the pot as well, but most of them didnt have any leaves at all on the branches, so i didnt grab one of those.
Should i fertilize it when i plant it, or wait a year or so?? Im not so much worried about getting peaches soon, my game plan is to just try and give it a good start and get established.
And last question for now....should i put wood mulch around it when i plant it or wait until fall when it starts getting colder out??
Sorry for all the questions and if they seem like common sense questions, but ive never done any of this before and am hoping i can get at least a few things growing and make it through the winter.:)

http://youtu.be/yBhqE2lwmaI

Check out the dirt doctor on how to plant a tree.

Colonel_kernel...thanks so much!! I will watch it before i plant it.
So how big could this tree get?? Im just trying to guesstimate so i can find the best spot to plant it. I thought it was going to stay really little so thats what i was thinking, but i have a corner of my back yard that might be a good spot...could it get to the size of a maple or oak tree??
Also i bought some osiculate (i dont think i spelled it right) slow release fertilizer thinking to add to the soil when i planted it, but when i got home, i read the back of the container, and it said something to the effect of not to use it if an animal will eat it because it contains something that can hurt them...so if it can hurt animals, then i wont want to use that for a plant im trying to harvest stuff to eat right?? It didnt say nothing about humans on it.

I'm very new to trees, hopefully someone else can chime in, but I only say that it'll probably get bigger because I've heard/read lots of reports about dwarf and miniature trees growing way bigger than what was said it would. As for the fertilizer, humans and animals not ingesting it is pretty normal. It's pull of stuff that plants need , but humans don't. The fruits will be ok.

Im new to growing everything. Lol but it seems i just cant help myself when i see things at the store. Ya, someone on here about azleas was saying that you cant really go by tags and i had no clue. I figured they would know more then i do and if it came with the plant then the info should be spot on. Now i am kind of nervous because the tag claimed that it would only get To 5 foot even if put in ground so if it gets larger then that, i have another spot i think i can put it in, but its about 6 feet or so away from my house's foundation and im wondering if that would be too close of fit, or if i should find another spot to stick it in. Thats one of the reasons i got the smaller tree thinking the blooms would look pretty even if i didnt get any fruit and the squirrels, and other outside critters would enjoy it.

You can always prune to keep it short. As long as it gets ample sun, the location shouldn't be an issue. I don't think the tree would get big enough to hurt your house or vise versa.

Thanks again Colonel_kernel!!
I watched the video and have it in ground and its been there about a week now. i have noticed that there are some small, i wouldnt call them branches, but its the smaller sticks off the main trunk that dont have any leaves or new looking growth on it, would it be better if i cut the small ones that look dead and have no growth on them off??
I was worried about root wise because i recently got excited and found a red oak that is small yet, but about 5 foot but super tiny trunk yet for 20.00. before i planted it i was looking around online and trying to figure out how to plant that one, and have read the some types of trees that have roots that tend to grow upwards of the ground and tend to break up side walks and foundations and such and from what i have read no matter how deep you plant them you could have this issue. I wasnt sure if this patio peach was one of those types or kinda what i could expect in a few years with that.
i just bought my first home last fall and my yard is the only home on this street that does not have 1 mature plant, flower nor tree, so i have been on a mission trying to fix that even though i have no clue as to what i am doing. i figure if i find stuff for cheap and they are pretty and or will help wildlife and feed or help squirrels in a few years down the road while looking decent i will be thrilled. But yet i am hoping i havent got over my head just buying all this stuff up not knowing what im doing, but i figure if i get a good deal on it, why not try and experiment a bit and hope for the best?? lol
I also noticed that when i planted it the other week and i have been out watering it there are A LOT of small ants that come marching off it and have noticed a couple small holes in a few leaves. Should i use something on it? Im not one to want to use chemicals, but i do have the bayer 3 and 1 spray and i also have some garden friendly diatomaceous earth that i can put on it if need be?? i have also noticed even when i bought it that it dont have all that many leaves on it, and i bought the only one with leaves..the others were bare, so i am not sure if it had issues when i brought it home and i need to baby it, or what i would even need to do to baby it??
And one last question for now....right now i just have dirt around it...i do have a few bags of the wood red mulch and also a bale of straw/ hay whatever..would it be a good idea to cover the dirt with the mulch or hay?? i have read that that hold in the moisture for the roots and keeps them cool i guess...or should i hold off doing that until it gets to cooler fall weather before the snow and winter hits??
Sorry for asking so many questions..i think this tree might of had some issues when i got it, and i just want to give it the best start that i can in hopes of it will come to live next spring and the following years..i appericiate all the advice and thoughts any of you have because i am clueless :) but willing to try and learn!!