Jim,
the turn signal stalk controlls the "flash to pass" lights. These are the 2 bright lights in the front lip of the spoiler. When the stalk is pulled to your chest it will turn the lights on. This switch position is momentary, meaning it is self-returning. This middle position is also the "dim" headlight position. Push the stalk to the dashboard and the "high beam" headlights are turned on.

The 2 dash switches are control the 1)sidemarker lights and 2) headlights. They operate independant of eachother, so having one switch on, does not affect the lights controlled by the other switch.

I also use my lights exactly as Steve described. One problem I haven't yet fixed is that one relay is driving the high beams. This is alot of current and it is overloaded. If I leave the high beams on, within 10-15 minutes there is a distinct electrical smell. So the relay or wiring will be upgraded.
Dennis