When the stalk is toggled between HI/LO beams the actuating arm moves toward the switch about 1/4". As suggested above - if the switch is working properly - it should emit an audible click. The click sound is pretty loud - usually loud enough that it can be heard under all driving conditions.
Check the nut and screw that secure the mounting plate to the column. If they are tight, that would indicate that the switch hasn't moved from its original location - so re-adjusting it probably won't help.
If there is no click (and the switch hasn't shifted from it's proper position), you can be fairly confident that it isn't a wiring problem - the switch is bad.
You have already done most of the steps involved in changing a headlight dimmer switch. Get a new one from almost any auto parts store for about $20. Then:
1. Disconnect the harness from the switch
2. Mark the positions of both the dimmer and ignition switches in relation to the securing fasteners with a Sharpie. Also note how the two mounting brackets are stacked - I think the dimmer switch bracket goes over the ignition switch bracket. Remove the two mounting fasteners:
You must be registered for see images attach
3. Put the new switch in place and bring the nut/screw up - but only fingertight
4. Align the switches using the locating marks you made earlier
5. Tighten the fasteners, reconnect harness to switch and test both switches (i.e. the starter operates and the beams flash up/down)
6. If both switches seem to be properly located, close up - you're done.
If you find it difficult to do this procedure in the tight space above the column. Remove the nut securing the column support bracket and lower the column until the steering wheel rests on the front seat:
You must be registered for see images attach