Sounds like you have airlock. Read this and follow the steps precisely:
http://www.318ti.org/forum/showthread.php?t=27983 As for the dash lights, it sounds like you may have shorted out one of the grey/red wires in the dimmer circuit. If one of those wires comes in contact with a ground or any metal part of the chassis, it instantaneously blows the rheostat inside of the headlight switch. This kills everything on the dimmer circuit including the gauge illumination, the window/sunroof switches, the HVAC panel and the cigarette lighter. If this is the case for you, you'll first need to find which wire shorted out and make any repairs to keep it from shorting out again. Then you'll need to replace your headlight switch. You can repair the rheostat, I've repaired several of them, but you have to be crafty with a soldering iron as it's a rather delicate procedure.