So its more 2D shadowing that is the key thing I guess. I am not using DBP, and now really using sprites either. There are sprites, but in a backwards sort of way.
I have not really looked online for help for this, so this is me just pondering away, but how I currently have it set up is the following
For each light, there is a gradient sprite drawn. But before it is done rendering, the shadows are drawn ontop of it with an erasing effect, such that the light sprite only appears where it should. Then the image is drawn to the scene, and each light follows the same pattern.
What really stinks is that each light has to be drawn to a new image. I would really like to find a way to avoid that problem, and not do it by casting out rays, because that is also not that fun....
To work out the shadows to draw, they are drawn as polygons. The system is pretty straight forward. Step 1 is to find the outtermost vertices, and step 2 is to project some points from each selected vertex to the light source, outwards for awhile, and draw a polygon on the now four determined vertex points.