Yeah, I found that if the lights are too close and both using vertex or pixel mode you might run into problems.
The manual says:
Quote: "SetPointLightMode
Sets the point light to vertex or pixel mode. Vertex mode is faster but pixel mode has better quality. By default lights are created in vertex mode. A mesh can be lit by up to 8 vertex lights and 4 pixel lights at a time,
if you add more lights than this then the closest lights will be used by the mesh. "
Perhaps splitting up your target objects makes a difference?