It was the fuse. Since the high beams came on dim, and the high beam indicator malfunctioned, I sure figured a couple of wires were shorted. Simple solution, although I'll scratch my head over the wiring plan for the car for a while.
I have a 2002 Subaru Outback with the same problem. I have tried isolating the problem, but have only been able to conclude that there is a short somewhere on the passenger side on the main headlight wiring. The bright light works when I jump the low beam wires from the driver side, but otherwise the high beams and the high beam indicator on the dash board malfunction. Shorts are a pain in the neck.