To fix the chips, you need to remove the headlights, which will tell you what you need to do to fix the drooping. Most likely what Doc Rebuild eluded to and possibly some rebuild of the lights themselves.
A good fiberglass body shop can fill in the chips and possibly blend in paint that closely matches your color, but don't expect it to look real good. You will certainly need to make sure the lights are then adjusted properly, which means they are flush with the front clip and could entail the support being reattached or possibly just the mounting bolts needing to be tightened. The lights should be flush and have equal space around the light holes, about 1/8"- 3/16" all around.
Heidi is right, safety first AND asthetics.
Glasspacks are good for test firing motors on a test stand. They don't belong on a vehicle. They don't even flow as good as some of the performance mufflers out there and certainly don't sound as good. I guess you could also use them on a tractor.