I finally got a chance this weekend to look at the lights in more detail to figure out the problem. It turned out that the bulbs weren't upside down, but they were turned slightly so that the wire was facing between 7 o'clock and 8 o'clock. I turned the bulbs so that the wire was facing directly to 6 o'clock and now I have a nice cutoff line with no shadows in the beam. Also, the problem of the light pattern wiggling is now gone. I figure the light pattern wiggling was due to the wire vibrating and I was seeing the movement from it in the shadow.
I hope that helps someone who doesn't have that clean cutoff line or a light pattern with shadows in it.