Drew, I'm not sure if this is the same problem you're having, but some of my objects stay "ON" even when the light leaves them far behind. Also, the dynamic light has some problems striking objects sometimes. Here's a 6MB Quicktime of some of the good and bad luck I'm having so far--apoligies for the large size, but it takes some time to see what's going on. (It's basically a room where the floor and one wall are covered with dozens of tile-grid objects. The Normal Map I made for the tile using Maya and ATI's NormalMapper.exe looks like this: