By using an override list, and some alternative meshes, I've got MGE XE to show lights in the distance. Note, this DOES NOT light the distant landscape, it just shows bright spots where CS placed light sources are.
Here are some screenshots, note, being night shots, you might not see much on your screens, depending on your screen settings These screenshots are taking using my lighting mod, so some things are a little different from normal.
http://dl.dropbox.com/u/46396473/MGE%20Screenshot%20062.jpg
http://dl.dropbox.com/u/46396473/MGE%20Screenshot%20063.jpg
http://dl.dropbox.com/u/46396473/MGE%20Screenshot%20064.jpg
http://dl.dropbox.com/u/46396473/MGE%20Screenshot%20065.jpg
http://dl.dropbox.com/u/46396473/MGE%20Screenshot%20066.jpg
http://dl.dropbox.com/u/46396473/MGE%20Screenshot%20051.jpg
In the distance, you will see windows, lamps, torches and campfires. As a result, it may even help you find things you've never spotted before.
Because it's making MGE XE render more smaller objects, there will be a minor performance hit.
There's a couple of lights I've missed, so almost ready for release.