well the problem is you are trying to combine fixed functions with a pixel shader, this cant work because the pixel shader overrids your FF commands. Heres what you do:

get rid of the lest line in your pixel shader where it returns, and put this

Code:

---

float4 finalcolor =(0.2 * color) + ((shadow1 * (color * diff1 + (spec1)) * (1 -Attenuation1))*vecLightColor[1])+ ((shadow2 * (color * diff2 + (spec2)) * (1 -Attenuation2))*vecLightColor[2]));

finalcolor.a = color.a;	
	
if (finalcolor.a>0.5)
  {
   finalcolor.a=1;
  }
  
  else
  {
  finalcolor.a=0.0;
	} 

return finalcolor; 

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