It could be fixed up to use multiple lights.

If I remember that example correctly it uses the same kind of code for drawing the shadows as mine.
What is currently the slowest in my engine is pasting the lights into the overlay...
If I could just find a work around for that it would be great...

Edit:
Newer version with scrolling and "soft edges"
It's not commented though...
http://www.mediafire.com/?9eg9i1m2dtj

To make real shadows a viable option in a full game made in MMF, I really think we'd need some help from a specialised extension, the amount of iteration required just to draw the polygons of the shadow is enough to create some nasty lag which may be fine for an example but is unacceptable once you factor in the additional loads an actual game would put on the processor.

The link is broken. Does anybody have another link?

Unless someone still has the file, no. The original file was lost in a hard drive crash.