i've got somewhat of a nice shader running, take a look and try it in a level, i'm going to play with the intesity and stuff to get it just right and it'll be great:

Code:

---

/*

Code Created by Taco Cohen, and modified my Manga Page

*/

/***********************************************************************************************
/	Global Variables:
/***********************************************************************************************/
// Tweakables:
float4 SpecularIntensity = {2.0f, 2.0f, 2.0f, 2.0f};				// The intensity of the specular light.
float SpecularPower = 0.5f;					// The specular power. Used as 'glossyness' factor.
//static const float4 SunColor = {0.3f, 0.3f, 0.3f, 0.3f};	// Color vector of the sunlight.

// Application fed data:
float4x4 matWorldViewProj;	// World view projection matrix.
float4x4 matWorld;			// World matrix.
float4x4 matWorldInv;
float4 vecAmbient;			// Ambient color.
float4 vecLightPos;
float4 vecLight;
float vecLightColor;

texture entSkin1; 							// Color map.
sampler ColorMapSampler = sampler_state		// Color map sampler.
{
	Texture = <entSkin1>;
	AddressU  = Clamp;
	AddressV  = Clamp;
};

void SpecularVS(in float4 InPos		: POSITION,
				in float3 InNormal	: NORMAL,
				in float2 InTex		: TEXCOORD0,
				
				out float4 OutPos	: POSITION,
				out float2 OutTex	: TEXCOORD0,
				out float3 OutNormal: TEXCOORD1,
				out float3 OutViewDir: TEXCOORD2)
{
	// Transform the vertex from object space to clip space:
	OutPos = mul(InPos, matWorldViewProj);
	
	// Transform the normal from object space to world space:
	OutNormal = normalize(mul(InNormal,matWorldInv));
	
	// Calculate a vector from the vertex to the view:
	OutViewDir = mul(vecLightPos, matWorld);
	
	// Pass the texture coordinate to the pixel shader:
	OutTex = InTex;
}


/***********************************************************************************************
/	Pixel Shader:
/***********************************************************************************************/
float4 SpecularPS(	in float2 InTex		: TEXCOORD0,
					in float3 InNormal	: TEXCOORD1,
					in float4 InViewDir	: TEXCOORD2) : COLOR
{
	//SpecularIntensity += vecLightColor;
	InNormal = normalize(InNormal);
	// Calculate the ambient term:
	float4 Ambient = vecLight;
	
	// Calculate the diffuse term:
	float4 Diffuse = saturate(dot(vecLightColor, InNormal));
	
	// Fetch the pixel color from the color map:
	//float4 Color = tex2D(ColorMapSampler, InTex);
	float4 Color = tex2D(ColorMapSampler, InTex);
	
	// Calculate the reflection vector:
	float3 R = normalize(2 * dot(InNormal, vecLightColor + SpecularIntensity) * InNormal - SpecularIntensity);
	
	// Calculate the speculate component:
	//InViewDir = normalize(vecLight);
	InViewDir = vecLightColor + SpecularIntensity *vecLight;
	//float Specular = pow(saturate(dot(R, InViewDir)), SpecularPower) * SpecularIntensity;
	float Specular = saturate(dot(R, InViewDir));
	// Calculate final color:
	return (Ambient + Diffuse + Specular) * Color;
}

/***********************************************************************************************
/	Technique:
/***********************************************************************************************/
technique SpecularTechnique
{
	pass P0
	{
		VertexShader = compile vs_2_0 SpecularVS();
		PixelShader  = compile ps_2_0 SpecularPS();
	}
}

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note that i have no shader knowlede, if someone can help me perfect this you're welcome to


edit: code updated