Got it! So the old switch had failed, and I found a blue splice, (like the kind you use to splice your trailer wires into your running, stop and turn signals with) about just too far back to get to or see, above the headlight switch plug, splicing the headlights and the running lights wires together. So to save 20 bucks someone spliced the wire. Some peoples kids!! Was miserable getting tools in there to get the splice cut out, but once I did, the new switch works perfectly. I coated the broken insulation with sealant. Hope the wire isn't thinned down too much causing voltage drop or heat.... Maybe get LED headlights and cut down the current draw there as well! The diagram and your description of what is supposed to be was most helpful. Thank you much.
ricky