A little more research.......

Well, after some digging it appears that the great state of Ohio has no regulation for headlight placement. The only requirement for custom built vehicles is that any part used from another vehicle must have a sales receipt to prove that the part did not come from a stolen vehicle and that it has headlights,turn signals and brake lights.
That being said, I think I'm still going to do some modification to the front fascia. That way if someone out of state wants me to build one there won't be any problems. 

A major set back....

Well I probably should have checked this out long ago but I didn't. Now having just read the regulations, it seams my headlight placement is at the correct height, but width between beams is to narrow, by several centimeters. It looks as though I may have to do a complete redesign of the forward section. I don't know how this is going to turn out. Obviously I'm very disappointed. The thought of having to do a complete redesign with the limited time I have to actually do the work makes this an even harder project.