Andy: I hope you don't mind me attempting to correct a few things you've said about lighting. I'll address some of the things you've said, but first, from my view, there are 3 basic ways of lighting your scene for plasma. Two of them allow you to see the exact results previewed in blender.
One is to set Amb to
0 and let all the lighting be dynamic. The advantage to this is that your lighting will be consistent between your avatar and your surroundings. (since everything is lit by plasma, it will be consistent) The downside of this is that it is hard to tell what your age is going to look like in blender, and everything will be vertex lit. (plasma has no per-pixel lighting, unless you're using a bumpmap, which I'm not sure is possible right now.) However, if you're using textured view, you can get blender to give you a bit of an idea what your lighting will look like. Take an object into UV face select mode, select all it's faces, and press [W] - Set - Lights. Now blender will light the textured object in real time. (move your lights around and see) What you see will be
somewhat reminiscent of what you will see in plasma if you make sure Amb is set to
0. (assuming you're using the new plugin and all lights are appended by default) In the future, we will be able to have plasma generate shadows dynamically, (think gira) but for the moment, this is not possible.
The second method is to set Amb to
1, set
Shadeless on, and let blender generate vertex colors based on your lights by deleting the vertex color layer and pressing "new". (generate the vertex colors before setting shadeless to on, or blender will take that setting into account when generating the vertex colors, but be sure to set shadeless before exporting, or everything will be double-lit) The advantages are that the vertex colors you see will translate exactly into what you see in plasma. The disadvantages are that it's still vertex lit, and you won't be able to move the lights around or activate/deactivate them in-game.
The third method is to use blender do generate lightmap textures for your age. This is the most complex method, but it allows you to use any feature of blender's lighting model to create your lighting. Once again, Amb 1 and Shadeless on, this time, use blender's "bake" function to bake the lighting onto the second uv layer and then set that layer to multiply. (or do what I did in tunnelDemo and externally process the image to make an alpha texture, and map that to a decal mesh.

)The disadvantage is the amount of work it requires for each object, and the fact that you can no longer use any dynamic lighting.
Now to go on to each of your points:
when you render things in Blender, you can do things with lighting and achieve results that are very hard to get or non-exsistant in the Plugin.
This is mostly true. Blender's renderer is a raytracer, it can certainly do things plasma cannot, but it definitely can't do those things in
real time, which is what we want.

If you want real time, you either use the dynamic lights and get vertex colors, (not excellent quality, dynamic) or you use blender's raytracer to generate lightmap textures. (static, lots of work)
The result you see actually is only half lighting. The other half is Vertex Painting.
This is fine. All the lighting in Odema is vertex painted. Plasma treats vertex colors as added light, so additional dynamic lights, if you decide to add them, will work, and as long as your vertex paint lines up with the lights that are affecting the avatar, no one will know the difference.

There were 0.1 and I moved them up to 0.5. that seems backwards as increasing the Amb would normally brighten the textures. But in this case I had them set to 0.1 for my day time Age. That's too dark for the night time.
Next, I selected the objects in the area and added a vertex color.
Err, not sure what's up here... If you want to use vertex colors for lighting, set your Amb all the way up to 1. Then what you see when you vertex paint in blender will be exactly, precisely, what you will see in plasma. (the way amb is exported is that all the vertex colors are multiplied by the amb value before they are exported, and as I said, plasma treats vertex colors as light.)
(spot lights are WEAK in blender with the plugin, they SUCK to put it bluntly)
I'm not really going to argue with this, but I'd suggest fiddling with the settings more. Try pressing the "quad" button, and playing with the Quad2 value slider. I won't say any specific values, because the results have changed drastically between plugin versions.

Now, some people might just lay a plane down like a decal, but that doesn't work to well for a rolling, bumpy terrain, nor does it work to well for your surrounding objects. Keep in mind the more stuff (meshes) you add to your age, the larger your prp will be.
I'm not sure what you intend to have such a decal
for, but you can create one for your terrain mesh by just duplicating it, or if you only want part of it, duplicate that bit in edit mode and press p to separate it into a different object.
Bottom line is this: This is FAKE. The realism is there only because I painted it there. Right now, lights are lousy (sorry Trylon and guys, I know you're working hard on it, but in truth, programs for the FPS's like Radiant have dynamic lighting that is easy and powerful to use). Making your lighting look real is going to be all about the textures.
I won't say that the lighting features available are
easy to use, but I would like to say that there is some power there, it's just.. well, hard to use.

This is entirely due to the fact that blender was not written for the sole purpose of interfacing with plasma, and so does not exactly replicate it's features like your other editors would. Also, plasma itself is an outdated engine. Most newer engines would not have you stuck using vertex lighting if you wanted anything dynamic. Any clearly defined spotlights or shadows in uru are lightmap textures. However, I would not call lightmaps
fake, as many FPS editors will generate
static lightmaps for much of the map lighting, much the way I described baking lightmaps in blender, only much easier.
