Quote: "The oddest part is that this grid seems to move WITH the player, but the main light source in the game is static..."
That is because AL's directional light is repositioned relative to you as you move around, which tells me that the problem is with the directional light itself (but not exactly sure what).
Quote: "I'm not actually sure if it uses a cubemap system"
Nope, in AL only point lights use cubemaps to render the shadowmaps.
If I had to guess I'd say MrValentine is onto something, the only times I've seen AL act in this way is when there are objects being rendered by the directional light camera which arent supposed to be.
Try using
paste image AdvancedLightingImage(6),0,0, using a shadowmap resolution which is smaller than your screen's resolution (so you can see the whole image). The result should look rather strange, but you should be able to see the offending objects if that is indeed the source of the problem.
I could also see problems arising if your buildings were taller than the directional light's range, does the problem persist when those buildings are 1/10th the size?