To remove the headlight knob, you should have reached up under the dash and felt on the switch. On the topside of the switch is a button. Push that little button down and you can pull the headlight knob, complete with the rod, out of the switch.
Don's 65 K10: Usually you can pull them forward a little to get a bit more space, but sometimes you can't. In this case you really may just have to bear down and offer up your pound of flesh.
