Self-shadowing should be possible. It's getting the shadows to cast on other objects that is problematic at the moment. The only thing I can think to do is render the shadow from the 3D level to a texture and apply it to a depth-sorting panel. Maybe? The problem with that is that the character stand-ins in the 3D level will need to be higher poly to get good shadow shapes (and they'll also need to be animated). One of the original advantages to this method was that the 3D level entities could be extremely low resolution and not animated, as they would never be seen.
I am unable to view those threads.