The 'lightmapshadows=1' doesn't affect your problem. I have it on zero, and if you've seen my WIP's, it's obvious I have good shadows. Try changing it to zero, or just look at my setup.ini:
[GAMEMAKE]
lightmapping=1
lightmapold=0
lightmapshadows=0
lightmapambientr=0
lightmapambientg=0
lightmapambientb=0
lightmapsunx=0
lightmapsuny=-1
lightmapsunz=0
lightmapsunr=0
lightmapsung=0
lightmapsunb=0
lightmapzerorange=100
lightmapatten=16
lightmapmaxsize=-1
lightmapboost=4
lightmaptexsize=512
lightmapquality=50
lightmapblurmode=1
lightmapthreadmax=-1
bloodonfloor=0
imageblockmode=1
showalluniquetextures=0
-PwP-