I am surprised the Year-One harness was problematic. I used those for my restoration, and many others have used them as well with success. I have found them to be great harnesses that fit and function very well.
If you are blowing fuses you have something seriously wrong. Seems like you have connected power to ground somehow. You need to fix this first, likely by "undoing" your attempted fixes...
All four tail lights use 1157 bulbs and function the same way. These bulbs have two filaments in them: one bright and one dim. So for EACH of the 4 bulb sockets you need to deal with three things: Power from the running lights that gets connected to the dim filament, power for the brake and turn signal that gets connected to the bright filament, and ground, which goes through the metal bulb socket. Ground is not a separate wire, it comes through the car body and the housing to the bulb socket. However, while testing, connect a wire with alligator clips to a good ground source to be sure. One of the most common issues for lights not working well are bad grounds.
To answer your questions specifically:
1. what do they look like with the headlights on? Are all 4 lights on and same brightness? With headlight OR running/parking lights on, all 4 lights should be on dim
2. What do they look like when brakes are applied? Are all 4 on and brighter? Yes
And 3. What happens when the turn signals are on? The bright lights blink, regardless of the dim lights being on or off.
Do this:
a) Put a bulb in a new socket that I assume is disconnected from the harness (you said you bought new ones). Hook an alligator clip to the battery (-) and to the metal bulb socket itself. Then hook another alligator clip to one of the two wires. Then touch that to the Battery (+). Repeat for the other wire. You will now know which wire is the bright vs. dim.
b) Now at the back of the car, take the metal socket and hook that to a good clean piece of metal with an alligator clip. Protect the bare harness wires from shorting and turn the running lights on. Now take the dim wire you identified and touch that to the wires until it lights. You have now identified which wire to hook the dim part of the bulbs to. This wire feeds all four bulbs.
c) The other wires feeds the bright for brake and turn signals. On my 70, green is for left and brown for right. To find the correct wires, turn the lights OFF but the ignition on, and put the left turn signals on, Try as in step b above to find the wire that makes a light blink. This will feed the left two bright bulbs. Then confirm for the final wire for the two right hand brake and turn signals.
I hope this explanation helps...
Hawk