Made an example showing how to 'easily' make lights in HWA. It also has code for dynamic shadow casting, but since the Overlay Object isn't HWA'd it runs a bit slow and don't correctly blend multiple lights.
Don't Try to run this in normal MMF since it uses HWA only effects and will therefore not appear correctly.
http://www.mediafire.com/?n9xdmu1cddl The reason the unrar'ed file is 7mb is because the flashlight has 32 256x256 images due to rotation not being pasted correctly otherwise.