Heh, actually it's a common problem. The seal is broken somewhere on the headlight unit. It's allowing moisture to get in.
I have, and I've seen quite a few other people post that have drilled small holes at the bottom of the headlight lens. That really helps the condensation problem, but it's not perfect. At least you won't have water buildup.
Also, on the yellowed headlights, you can use a mild polishing compound on them. That will clean the yellow off and restore the clear look.
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