Thanks for the info, it was on my to-do list!
What kind of terrain are you using? Advanced Terrain or something else? I ask because I'm unsure how you've added a second texture as a lightmap. I imagined you would have to take the texture map and modify it (darken the pixels).
Quote: "You can vary the intensity of the shadow many different ways."
Yes, I considered an algorithm where you softened edges by detecting changes from light to shadow. You could set a fade value, and use this for the circumference of your fade.
You could also change it dependant on the distance from object to ground. I can't remember if it's in V2.03, but in 3 you get a list of intersect points, not just the first one.
BatVink
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