I've been having a look around recently to see if anybody has been able to implement the shadows that we all saw in the early-build trailers. Not really finding much, I am now asking you here.
Are there any mods that enhance the shadows system in Oblivion to a more realistic level?
Basically here is what we're facing:
The shadow system in OB is hardcoded to only cast shadows from rigged objects (PC/NPCs/creatures)
There is a limit to the number of shadow casting objects in the scene
There is a limit to the size of the object (bounding box 500x500x500)
The shadow system does not allow shadows to fall on another shadow caster (IOW you can't cast a shadow over an NPC)
All that said... RGP-BlackDragon developed a system to 'rig' statics and script them to not move. His methods still suffer from the other limitations.