To add a diffuse texture to that same object you would
set blend mapping on 1, 0, 1, 3, 24
set blend mapping on 1, 1, 2, 3, 7
The first number is the Object number
The second is the texture stage (0-7)
The third number is the image number
The fourth is the UV stage (i've always left this at 3)
The fifth number is the D3D Blend Mode
I haven't explored all of the possibilities of the set blend mapping on command, but I've played with it extensively and found out quite a bit.
1. It's slower than a shader
2. Blend mode 24 handles normal maps quite well
3. Blend mode 7 ADDS the image to the current texture
4. Blend mode 4 MULTIPLIES the image to the current texture
I could go on and on, but those are the basics to texture something with a normal map and diffuse texture.
As for shader lighting, I have never seen that issue with the shadow not being updated. When you are using shaders, the shader should know the position of the light, and recalculate how the light hits the object each sync.