simply try this:
for z = 1 to 50
for x = 1 to 50
set matrix normal matnum, x,z,0,1,0
next x
next z
after that i had no problems with the display of pointlights on a matrix...
oh and one more thing that is unrelated: when working with lights alot I noticed that point lights make light on objects REALLY far away from them sometimes. Use set light range lightnumber, 60. 60 to 100 might work best then. I had some interesting bright blue, green and red skyscrapers before i did this

.
Superbeast's code actually generates raycasted shadows that look really cool! I did something similar! If anyone wants code for doing that with objects on a matrix, I can do that to, so just ask!
Ed: you are correct (from what I've seen) that light zero and ambient light are different. IF you want a directional light from the default lights you can simply turn light 0 into a directional light.
Set Directional Light 0, 1,-1,1. (try flipping the -1 to 1 if you have problems with it).
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