first of all, welcome to the action center.. :cool
secondly, have you tried turning the manual headlight knob located at each headlight under the hood?? as you turn, do the headlights move and then fall back down??
what it sounds like - the same thing happend on my dad's 89 back home - is that the bushings inside of the gear assembly have fallen apart.. if you take them apart, there is a good chance you will find they have turned into powdered sugar...
i purchased replacements from mid america... the reinstallation of these pieces is not hard at all... my brother and i took a few hours and did it ourselves...
from what you said, it sounds like the same problem we experienced... hope this helps...
Geof