I had a similar issue with my BII and when i went into my wiring harness I found all kinds of problems. The main culprit was a factory splice that came apart and shorted. Headlight problems are common, as sometimes people install Halogen headlights which draw more amps than the originals, and cause the dimmer/multi switch to burn out. might even find some melted wires in the harness that feeds the lights (they run behind the top of radiator) I also had a main power wire from the alternator that had melted. Be sure and check all the ground wires around the engine compartment...
I had to replace my pigtail as well, (They actually sell it at Auto-Zone parts store its such a common problem) and then followed the wires all the way to the battery which eventually revealed the burned wires. A Haynes repair manual with show you the schematic with wire colors and its not too hard to follow.
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