Quote: "but can those illuminations be reflected in the environment, ground, walls etc?"
The next update will support reflective surfaces. Though do illuminated objects in real life reflect anything? I believe they produce light rather than bounce it off from other sources? I've never really seen an example of this in games or 3D films? I could be wrong.
Quote: "i got this... need to see why i get a black edge around.... :s "
The areas that appear black actually have color values in them still. Even if you cant see them. It has to be 100% black to work for the most part with transparency=1.
For your neon sign i would try removing the glow effect that you trying to add in Photoshop. So remove the outer glow layer effect. Try just bringing up your "bloom" a bit more in game and you will have a muchhh more realistic effect.
Or if you want to isolate just your illumation, there will be options for that:
Quote: "edit the "settings.fx" file and set "#define BOOSTILLUM" , this will take you illumination texture (only) to bloom level and give that extra shine, think i made this one for bugsy but never really announce it, but its in all the latest GG version "
Then as synchromesh suggests, you can add a light in Game Guru around your neon sign area to light up the walls and ground with the same color as your neon sign. You should be able to achieve great results in GG DX9 presently.
I haven't quite gotten around to it.. but I did intend to convert all of the FPSC lights over to Game Guru. A project for December perhaps lol
EDIT: Just realized there are two running threads about this same topic?