Have you tried to use Surface normals?

Face and Vertex Normal Vectors (Direct3D 9)

Simply add D3DXComputeNormals(pMesh,0); but prior ent_setmesh(entity, pMesh, 0, 0); was executed.

Regards, Robert

Quote
Everything should be made as simple as possible, but not one bit simpler.
by Albert Einstein

PhysX Preview of Cloth, Fluid and Soft Body

A8.47.1P