harbor update: not looking good so far. The problem is still trying to get objects to cast shadows onto other objects without all the waviness due to water interaction. I can get objects to cast shadows onto themselves but it really messes up the harbor as you can see the shadows of another object through the one you're viewing plus the latter problem. The ultimate root problem is this:
with the subs, ships, guns, etc. you define a light source and place it at the tree root. Take for instance the VIIb sub. The light source is attached right at the VIIb's root node (which has parent ID of 0x0) which is NSS_Uboat7b. Now everything that is attached to this receives 'shadow' light. All you have to do to have objects attached to it to cast shadows is attach DynamicShadowCast controllers to those objects. Now the harbor doesn't want to play. I place the light source at the tree root (using Brest currently so it's Brest_harbor_Dummy) and no shadows (nowhere, not even on the objects themselves). I create a base node off of Brest_harbor_Dummy and attach the light source there - same thing. I add a 'shadow' light source to each individual object (in the harbor kit file) and now they cast shadows on themselves but the aforementioned problem above occurs.
I've even tried stripping away the StaticObject controller to no avail.
Since the harbor objects are clones I created a real lighthouse in the harbor to see if I could get shadows from it or have it cast shadows on itself. Same problem. If I give this lighthouse it's own lightsource it will cast shadows onto itself with beginning aforementioned problems.