So, I tried adding the shademode = flat thing which IS better, but still not correct. The colors on the lighted sides are wrong and the lighting should be based on the angle of the surface not what I have here:

That one odd block, the red one on the left in front, is how it should look. That's a block though and will later be replaced with a model, a start platform. Note that the other objects in the background have this bad white color and you can clearly see the polygons that make up the object. The polygons should, actually, be made of the same lighting when on the same plane (as with the block. The "normal" color you see is how they should appear at the brightest. For the darkest, it's like putting a half-transparent black object over it as with layers in GIMP. That's the concept I'm using in my 2D game (and the same basic sun angle as well where the brightest is on the top right and the darkest is on the bottom left. That red octagon-sphere above is how it should look like. This is only textured though and took about two hours to figure it out.