To apply it to level blocks, you must modulate the last result in the FFP material with entskin3. So there are 3 texture stage

1. Modulate block's texture with flashlight texture(transformed)
2. Modulate current texture with diffuse
3. Modulate current texture with lightmap texture

The 2nd step is optional, only if you want to use dynamic lights, if not, just skip to step 3.
I forgot the detail. I'll try to dig my files at home, maybe tomorrow...