Wow, first the eMS and now the SmartWheel. You must be running on metric electricity or something.
I had a few problems with my SmartWheel on my 2004 Bus with Freightliner XC chassis. Mine got so that every time I touched the wipers, the headlights would go off. I could turn them on again with the flash button but every time I did I'd lose the marker/tail lights. I either had one or the other. So I pulled the marker light relay and jumped it to leave them on, ran with the headlights, and kept my fingers off the wipers for that night.
The SmartWheel itself only has 4 wires running to it via a clockspring in the wheel, and two of those are for backlighting the buttons. The other two are for communications to the SmartWheel controller module.
Each button you push sends a unique code to the controller module to tell it what you want to do. The controller module takes inputs from the headlamp switch and other devices and sends the outputs to the lights and wipers via relays. The controller module makes all the decisions and turns things on and off inteliigently. The buttons on the wheel only tell it's brain what you would like it to do. Sounds like your SmartWheel brain has a virtual tumor and needs to be replaced.
Incidentally, mine had to be replaced twice. The second one failed after a shoirt time and went goofy again too and Freightliner determined that the headlamp control module was causing it to fail. They replace both modules thesecond time and it worked fine ever since. That was in 2004 and the replacement headlamp module was larger and more robust than the original one so I would expect you already have the larger one on your 2007.