I have tried to solve this one on my own to no avail. Was following the Harry Frank tutorial on using Form to create a crowd and all was well until I hit the part about adding lights. I created a light, turned on Shading and... nothing. Experimented with multiple settings on Form and my clips with no success. Every person remained full bright. Tried using a Sprite Preset, thinking it was something weird with my clip, but no go. Still all bright. Everything I've watched and read seems to indicate sprites can be shaded and accept lights, but I can't get it to work. Synthetic particles (sphere, cloudlet, etc.) all react fine so I know it's not the light. Just as soon as I switch to Sprite or Textured Polygon I lose all shading capability. What am I missing?
It is easier to destroy than to create.
More fun, too.