Well, the plot thickens.
Today, after I calmed down, I took the car to a friend to see if he could help me figure out why my car just melted a brand new signal lever.
We looked over the wiring diagrams and after i made a comment about my foglights not working, he said... "well, that's suspicious, lets go have a look."
When i tried to pull the relay out, it was stuck.
I ended up having to use a screw driver to get that mother out of there! It was totally welded to the socket!
From there I started following the wires from the socket. Man, what a mess! Melted wires everywhere! Luckily, there was no damage to any other wires in the local area (and behind the fuse panel... there are allot of neighbors).
Anyway, my friend said that this could really be the reason why there is still a short in the headlight circuit. The foglight and the low beams share the same wire lead to the fuse box.
we also wired up two 40 amp relays to protect the headlight circuits from carrying such a ligh load.
Here are a few photos of the carnage and the new relay.