Anyone who's played the beta or seen footage of has probably noticed the vastly improved shadows. I was trying to figure out how they did this so without destroying your PC with a bunch of doom 3 light calculations, here's what I've figured out: http://imgur.com/a/K5YIn <- screenshots showing what I've explained below.shadow_control seems to be obsolete now, instead dynamic shadows will use your light_environment angle(I think).light_environment seems to cast a dynamic shadow covering the entire map.light_environment lightmaps still exist.lightmaps fade out when far.dynamic shadows fade in when close.dynamic shadows now cast on models, not just brushes. This includes the weapon model on your screen as well.dynamic shadows are not drawn if the object is not in the light_environment's light. As a side effect, there are no longer dynamic shadows when indoors. However there was a command called r_shadowfromanyworldlight but it doesn't seem to work. I'm assuming in future versions of Source we'll see true dynamic shadows casted from world lights for models. Much like the flashlight which casts client side lighting/shadows. I do recall an early HL2: EP2 preview video that displayed this when a Vortigaunt was killing an Ant Lion, the light coming from his green electricity attack was casting dynamic shadows everywhere. Out door maps are going to look way better now, and the best part is its not expensive at all to render.