It's a whole shading pipeline and no it doesn't work with official shaders unless you have enough experience to implement it, but then I suggest you to write your own, better shaders instead of using the "official" ones. Besides that it doesn't work like "normal" lighting calculations and there are no "near lights" because that's a part of the light-management system of direct-x 9 which I'm not using here because it's extremely old and you simply don't need a 8 lights per entity limit for today's games and hardware. What I'm using is much more flexible. There is no lights per entity limit and there's also no global light limit.