I found 2 funny (probably) engine bugs:
- if stencil_blur in main.c is commented out, and #define USE_SM30 is used (enabling shader model 3 object shaders), then the shadows become sharp and have fog colour. but it also results in fog coloured artifacts in case of shader model 2, near water surfaces (probably because the water shader always uses shader model 3). the same happens if I replace FOG with TEXCOORD7 in shaders. but if you press T to create the test character, in some camera angles shadows become perfect...
- another issue can happen if only the terrain is visible, then without stencil_blur applied, sometimes the 1st terrain texture is rendered on the screen...

thus stencil_blur must be at least 0.1. always.
I have again a little list of engine bugs to present to Jcl...