What's the position of that shadow in terms of world coordinates? Is it like x 0, y 0, z 0 or something? Because in that case I would check your code whether or not there is an additional invisible model spawned at that location.
The animated and moving object doesn't appear to have shadows set active, but.. you might be right in this being some kind of a freak bug after all.
Quote: "@Green7: using mode 1, I see no shadows. Modes 2 and 3 are the same (like the video I posted)"
This doesn't sound right though... did you check whether all shadow modes are cycled through correctly with the other church demo? There is quite a difference in what each shadow mode does.