"STRANGE" light switch
Flipping the gear will only buy you time. The gears are plastic and will eventually wear out again. When the gears in the headlight motors start to wear out, the headlights will start to do odd things, like go up and down when you set the alarm, pop up when they shouldn't have popped up yet, etc. You'll also hear that grinding noise that you said you heard. The little plastic gears in the headlight motors wearing out is a common pontiac problem...you're now a member of a very large club that have had to flip/replace the gears.
Replace (or flip) the gears in the headlight motor and I bet your headlight problems will go away...

