First question... you are 100% sure you have the domelights set to "door"? There should be a switch on the light assemblies themselves that say "Off" "On" and "Door".
Second question... that switch turns on the parking lights. It is meant to be used when you are sitting in a parking lot and want to have the lights on but not have the engine running (as the key needs to be turned to "run" to turn the headlights on under normal circumstances).