Check the voltage regulator on the firewall, could be over charging with the load from the headlites. Also with the car parked in the dark, car in neutral, headlites on, open the hood and see if you can localize the noise and smell. It could also be a combination of the belt and voltage regulator. Maybe the alternator is draging with the load on.
More pictures of my Goat:
http://www.geocities.com/mm5581/index.htm
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More pictures of my former Goat:
http://www.barrett-jackson.com/appli.../w_search.aspx
My old car is listed in the 2007 Scottsdale Auction, Lot #1016 - $60K
And in the 2008 Scottsdale auction, Lot #960 - $80K
Eventually sold by Brighton Motor Sports in Scottsdale, AZ -$89,900