Yeah, alternative shader code would solve this, at least, that's how I set up my game. Water for example, starts at 2.0, then goes to 1.1. The 2.0 takes more resources, but you can change quality settings in the menus if you need.

But I guess A7 will be released this year, and possibly the 2.0 version of this code as well. I'm looking forward to this shader code; JCL's past shaders worked great.

@Frank - I don't see any reason why that scene wont eventually be possible with the new FBX importer. Basically you'd just save your lightwave scene as FBX, import that scene in WED, and put your lights in. Hopefully though, the importer will also import omni lights from such programs as Max and Lightwave, then you can set your lights in your modeling program and just use WED for building and setting paths.