Hi RTR,
As you've discovered, lighting can be very tricky in DBC. The effect depends heavily on a high poly count and the direction of normals because of the shading algorithms. If you use a plane as a wall, the shading style will be flat - i.e. one intensity - no significant gradation. The same thing for the walls of a cube or box. You really won't be able to see much of a lighting effect except for ambient.
As a test try making a matrix with lots of tiles and randomize it a bit. Cast different types of light on it and you can see their effect quite clearly. Reduce the number of tiles and try the same effects - you'll notice a degradation in the lighting effect. This test will give you some idea of how the light is effected by poly count. Try casting light on a shpere versus a cube and you'll also notice a dramatic difference.
This should help also - when you create your models in an external program, make sure that you are exporting normals and that they are pointing in the correct direction. If you are creating an interior, make sure the normals are pointing inward, that way when you use lighting effects, they can be seen from the inside. If the model surface is exterior, make sure the normals are pointing outward.
As far as setting how a model reacts to light, there are 2 flags that are directly applicable to lights that you make, and ambient light in the command:
SET OBJECT Object Number, Wireframe, Transparency, Cull, Filter, Light, Fog, Ambient
Also, try using fog and changing the distances and color.
Enjoy your day.