note: took off the shadows to show you a comparison,
while i agree the shadow system needs work, I definetly think this makes things look too bland.
![](http://www.edigames.com/s3shot49.jpg)
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I'd suggest much smoother shadows - instead of being harshly well defined, they should "add shade" to an area. That way they aren't visually detracting, but rather just add mood to the area they act upon.