I've started work on gettng the town graphics into the game and I'm really happy with the progress. I had to add some new features to the lighting system to make it look just right and it all seems to be working out quite well. I've made the wooden floor lighting use an "interior floor" lighting mode where sunlight fades out quickly over distance, so even at midday, the interiors will get quite dark if you don't have any artificial lights. I've added a couple of tables that give light and a wall lantern, so most rooms will be lit 24hrs a day, but it allows me to do complex adjoining rooms that are very dark even during the day. I've also changed the way walls are lit so the entire wall brightens up. Previously the 4 corners of a tile would receive different lighting, and to cut a long story short, this meant that the top verts could go black from being in shadow while the bottom verts would be light... this is a side effect of a trick I use to save on overdraw - everything is actually a flat 2d tileset and just made to look like things are orthographic 3d. Allowing tiles to overlap neighbouring tiles completes the illusion.
I've added door objects that open and close as you pass through them, which works great with the dynamic lighitng. I've made the doors 50% shadow casting (like the forests) otherwise doors below you would just be black silhouettes due to the shadow system. You can see this in the screenshot below.
So, here is a teaser screenshot. I'll do a video of it on the weekend as it looks great watching the dynamic lighting kicking in as you walk around and open and close doors..