1984 Porsche 944 2.5L 163K miles, electrical problem

My 944 has no running or dash lights when the car is running. They operate only when the key is inserted into the ignition, (not ON), the headlight switch is turned to parking lights or headlight position, and the turn signal arm is moved up or down. When the key is moved to ON, the lights go out and the turn signals operate normally. I cannot use the car at night. All other lights work properly. Also, the headlights do not retract when the lights are turned off. It will retract at a later time on its own, (minutes or hours later). I wiggled the a/c relay, and the lights worked properly for awhile, but not now. I replaced the relay. No good. The "A" spade on the fuse panel shows signs of expansion and overheating. I am confused. Can you help? Jon