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Just go HID's, you'll never look back. I did that mod, yes it works but not as much as you would hope for. Went HID's after so happy with them, I installed them on my mothers truck and she loves them no more guess work/sketchy bad weather/night driving issues.
Uh, not all blue lights are HID's, and not all HID's are blue. So yes and no.
But generally people go with a blue tint on their HID's (Like me), to cut down on the glare factor the pure white bulbs have. Or they just like the colour.
Warozz has a great writeup around here somewhere with pictures comparing light output comparing them and all his setup.
No problem, it plugs into your existing wiring (Basically the plug you pull out of the back of your existing bulb plugs into the circuit that they have to sense when it needs to be on/high/etc. I'm not sure what was wrong with yours you may have to fix the pre-existing issues that you have first. The short or whatever you showed.
All you have to do when ordering is tell them it's 9007 (Bulb size) for a 1994 F-series pickup, and whatever tint you want. I'm running 6000k I think, just a hint of blue.
Also clean your lenses, it helps. You can go crazy and put the professional cleaners, or get a polishing wheel. I just use tooth paste on a paper towel, little swirls and rinse off. Hell of a lot cheaper and works wonders in a pinch.
EDIT: Stock housing yes. Though you can get Euro/Projections housings and it will aim the light better.
A lot of it depends on where you are as well. It is always overcast, dark, and rainy where I live for like 7 months out of the year, so stock lights in a 20 year old pickup just don't cut it.
Truth be told though the last time I used my HID's not for like lighting up a frozen lake at night (So Canadian I know...) was like 2 winters ago in the middle of a white out blizzard up in the mountains at like midnight, talking High beams, flashers, bumper lights, the works and I could barely see a car length ahead of me. Other than that I've not needed them.