First, use the current version. This probably won't help here, but you should not use an old version when looking into a problem.
Updated to 7.70 ... problem still exists ...
If the statistics panel is stuck at 8 lights, you're possibly still in A6 light mode, and the A7 light manager is switched off. Bumpmapping shaders won't work then either. This happens when either your level - or some part of your level - was accidentally compiled in A6 mode, or when the "patch" variable is set.
I'm not touching the "patch" variable ... so it should be set to the default value.
I use the current compiler and the engine startup window says A7.70 ... is there any other way it could possibly be compiled in A6 mode ?
The other possibility is that there is something wrong with your whole level construction, for instance when your level consists of a single gigantic mesh. Of course then you can't see more than 8 lights at any point. You mentioned "MDL hallways" - I hope you have not really used a single MDL for your hallways.
No, I'm not using a single MDL for the hallways. The individual segments of the hallways are MDLs (three different MDLs that are duplicated "all over the place")
I really hope that it is something else that I've done with the level ... but it's not apparent to me.
Cheers,
Andreas
