Quote:
From the manual:
The engine uses ambient, diffuse, specular, and emissive light from precomputed radiance volumes (PRV) and dynamic light sources...
I believe that a model's PRV depends only on its origin, so to get good lighting on your sidewalks and buildings you have to make them blocks, do a "poor man's tesselation" and make lots of models, or make the street lights dynamic. I'd go with the first option, myself, but if you don't have too many street lights close together, dynamic lights would work well too.