Your screen name....
Funny thing. I JUST checked out this thread and that damn movie is on right now!
Okay...
The wiring to the headlight switch may look like this!
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This is from my 70 Charger. I had a switch burn out in 2001. The positive wire melted a bit and some of the insulation was burned away. Notice the melted spots on the black plastic plug. I had to replace the switch and do my best to clean the plug so that the spades of the switch could make contact. The smell you noticed was probably from the wire melting.
The headlight wiring is NOT ran through a fuse! The way it is powered takes a wire diagram to fully understand it. I'll do my best here but PLEASE keep this in mind: Once a wire burns or a switch fails, it is a symptom of future problems that will happen without making some changes.
Okay.....Feel free to read and REread the following until it makes sense.
The Alternator has 3 wires going to it. One 12guage wire is the main charging wire. For now, forget the other 2 small wires. The big wire carrys all the charging amperage that the alternator makes when the engine is running. THAT wire runs along the right side of the intake manifold, across the firewall and into the master plug/bulkhead connector. INSIDE the car, that alternator wire, the one that carries ALL of the 40+ amps that the alternator is putting out, that wire splits off into 4 other wires. They are the FUSE PANEL, the IGNITION switch, the LIGHT switch and the BLACK wire to the ammeter. The ammeter has 2 wires on it. The OTHER wire is RED and from the ammeter, it goes back through the firewall and to what is called a "Fusible link". This is not a glass fuse like it sounds, but instead a section of smaller wire that is supposed to burn out if the system encounters too much heat or electrical load. AFTER the fusible link, the wire is connected to the starter relay.
I'm not sure of your skill level, but it is becoming a popular thing to upgrade and change the way that the interiors of the car get powered up. You might want to check out the MAD electrical website under the Dodge section. They do a pretty good job of explaining where the weak points of the system are and how to improve things. Good luck and be sure to report back what you find out.