Found the lighting issue.
Create a new global material with
MATERIAL* mat_dynamic =
{
ambient_blue = 20; //unlit brightness
ambient_green= 20; //unlit brightness
ambient_red = 20; //unlit brightness
emissive_blue = 200; //lit responsiveness
emissive_green= 200; //lit responsiveness
emissive_red = 200; //lit responsiveness
}
and apply it to all the entities you want to be lit with dynamic lights.
Attach the material like so
...
ENTITY_NAME = ent_create(blah blah blah);
ENTITY_NAME.material = mat_dynamic;
...
This will get you started. Play with the material properties to learn more.
Call the material whatever name you want.