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Early cars like your '68 have individual wires that plug into switches like your high/low beam stalk rather than a socket that holds all the wires.  Sounds like you have one or more wires plugged onto the incorrect terminal, since it's unlikely that a new switch is defective.  You did get the correct dipswitch, did you not?  All roundies use the same one, the only difference being the shape of the knob on the end, which unscrews.  Squarelights use an entirely different dipswitch, which incorporates the turn signal function


According to my factory shop manual wiring diagram, there are four wires that connect to the dipswitch on 6 fuse cars, like your '68:  


Terminal #         wire color              goes to terminal #      at

56                      yellow/white tracer      56                            headlight switch

30                      red                              30                            ignition switch (main +12v feed to headlights)

56a                    white                           56a                          headlight high beam

56b                    yellow                         56b                          low beam


Make sure youre wiring corresponds to the above; if that doesn't work, there's a short somewhere in the system.  On a '68, none of the headlight circuits are fused.



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