There is also another lighting project that I think is well done and documented. The project is an update of Gunmod's Radiance Lighting project as well as incorporating parts of Numenor's dizzy light mod and such.
Look at dDefinder's
Radiance Lighting 2.4 Project at MTS2. Numenor also provided an easy-to-install program that enables you to install the lighting project in a snap. Check out Numenor's
Scriptorium at MTS2. It is a small program that installs a majority of things for you easily. Download to your desktop, unzip the zipped file and then click on the setup program to install Scriptorium and then click on the new program to begin installing the lighting project.
The lighting project is what I use for the most natural look possible in the game, and I enjoy it a lot.