Alright let's say I have an mdl normal mapped and I want to add dynamic shadow stencils in a way that they are casted in within that model and affect other models/terrain/bsp blocks as well.

How do I do that? are dynamic shadows meant as shaders as well? and in that case can I mix the two normal map + shadows shaders together?

Both techniques have no effect on each other. Normalmapping is an object shader, stencil shadows a post processing effect.

That's good to know! So how do I implement/activate shadow stencils? And from there add or remove antialiasing to the shadow itself?

you can activate it by switching on the SHADOW flag of the entity in WED.

Alright! works fine except to smooth the shadow I need to use a function that works only in lite-c version.