I usually don't have very many of the lights in the view at once, so you can get away with it. The only thing that hogs my framerate are stencil shadows when they are close to the camera(I use fixed point views mainly) and areas that have not been optimized due to only using preview builds. Final builds will take care of them.

Below is the poor man's, basic version of my dynamic light action. The one I use is 2 or 3 times longer, and it allows for lots of control over blinking, color, and range(constant or random), as well as, a few other things.

If you want the light to influence a model's stencil shadow, set its FLAG1. SKILL1-SKILL4 deals with color and range, and if the player is greater than the value assigned to SKILL5, the light is turned off:

Code:

---

  
action dynamiclight
{
   while(player == null) {wait(1);}
   my.passable = on;
   if(my.flag1 == on)
   {
      my.cast = on;
   }
   else
   {
      my.cast = off;
   }
   while(1)
   {
      while(player == null) {wait(1);}
      if(vec_dist(player.x,my.x) < my.skill5) 
      {      
         my.lightrange = my.skill1;
  	 my.red = my.skill2;
  	 my.green = my.skill3;
         my.blue = my.skill4; 
      }
      else 
      {
         my.lightrange = 0;
      }	
   }
   wait(1);
}

---