What is the prescribed method to clean/dry out headlights that have condensation in them? My 88 needs it.

I use alcohol.i just take out the lamp pour some in with a piece of rag swish it aound pour out whats left over get rag out and rinse with clean alcoho and let dry...

So do you have to take them off? Is there a way to do them on the car?

Yes, you have to take them off the car so that the lense is down with opening up, in order to get suffeciant alcohol inside to 'swish'... a wooden stick with a rag rubberbanded on it helps in the corners.