You can download "MatsEd2" from my signature, itīs a material editor. It will write out the material as script, so you can copy and paste it in your code. Atm MatsEd works only with models with only one skin and no groups. But a default model is included.
Beside materials you can use self illumination:
action colour_me
{
my.red = 255;
my.green = 255;
my.blue = 0;
// yellow colour
my.light = on;
my.lightrange = 0;
}
Self illumination is not a dynamic light. You can illuminate as much as entities as you need.