Well, the topic is a bit misleading. It's not about animated lighting. What it is about, however, is lighting on animating models; our main character that walks around under player control moves through the various level lighting conditions just fine, shading his body smoothly as he goes place to place.

Then, there is the problem: Our NPCs that are running simple idle frames (sitting around at a bar talking, for example) respond to lighting in MUCH less desirable ways; the lighting appears to "snap" and update conditions every 2-3 seconds! This looks absoultely horrible, to say the least, and is forcing us to keep characters in the shadows for our demo.

Does anyone know how to get around this problem? Even unlit'ing the models and setting an ambient light continues the problem, as it is from a engine-set light source (and even if this worked, would be a less than perfect solution.)

Any help would be greatly appreciated!