Has anyone every fixed this? Just wondering since I just came up with a solution. For those who don't know what it is, the lighting bug, that is here is a re-statement of the problem.
When you set up an object to emit a light when it is activated you have this annoying ambient glow which attaches to the object, even when it's off. This problem was addressed, at least partially with the introduction of non-amibient light sources, introduced a few patches ago, however while the annoying glow was gone these light sources emmitted no light, though there would be a flame animation for candles, campfires, etc..The lighting in the area stayed the same.
So the best thing would be a non-ambient source that still emits light and changes the lighting with the light source as the center point.
Probably someone else has done this already, but I now have fixed lighting.
Cheers!