I'm currently working hard to learn lightmapping, and how to work with light and shaders. I'm currently re-working the levels of my game to have better looking light and shadows.
I feel it necessary to give a big thanks to Bugsy for giving me a lot of good instructions on how to work with lighting and shaders... and for pointing me to some of Wolfs great tutorials on this subject matter.
Here are a few pictures from my current work.
1. The first is from a cave I made with the cave sections in Mega-pack 2, and I put a static light near a lantern hanging on the wall.
2. The next 2 pictures are from a level of the game that I have been working on with a fire place in the background.
3. The last one is from my attempts to make light rays go through some windows.
See the comparison to the old picture from a couple of years ago.