It's a shame FPSC doesn't have spot lights. Just tack one onto the player model and it'd work great...
I made something similar in UDK in Kismet, so my player could have a short range flashlight for close encounters, and an underslung flare launcher to spot enemies further away...
Fyi, I'm not turning this into another argument. I did make a lantern script for FPSC using Project Blue that could easily be adapted for the player, but you want to use 1.18, and I'm not sure if it'd work...
Also, it's a point light in the script, meaning that it isn't directed like a light in a cone, more like a general light in an area. Last I checked the dynamic lights were also pretty bad, at least, not as good as the static ones. So you'd have to deal with that as well...