you dont need to do normal mapping to have decent shading, you just need the standard dynamic lighting. First make sure you have included material.wdl in your project.
If you are using the static lights from WED, then the model will only be shaded basically.. you need to also place dynamic lights on the areas where you want good lighting to come from. Dynamic lights are hardware lights that shade the model more realistically. There can only be 8 of them visible at one time, so you need to place them somewhat apart from each other, and then do a function where they turn off if further than a given distance from the camera.
make an action like this:
action dynamic_light_object
{
my.invisible=on;
my.passable=on;
while(1)
{
if ( vec_dist(my.x,camera.x)< 1000
{
my.lightrange=300;
my.red=255;
my.green=128;
my.blue=200;
}
else
{
my.lightrange=0;
}
wait(1);
}
now you have this action, make a simple cube model and place it WED, then attach it to this action. Then place these models on the same spot as your static WED lights. Then maybe dim down the WED lights a bit so it isn't too bright. You will have much more satisfying lighting effects. Combine with stencil shadows and the my.cast=on flag, you can have nice results.
If however, you still decide you want per-pixel lighting and normal mapping, then you must use my Ultimate Lighting shader pack.. just search for that on the forum and you will find it.
}