And no itd not using vertex coloring or alpha shadows, basicly just rendered only the sadhows of the objects.
http://www20.brinkster.com/sutabi/faked.jpg
http://www20.brinkster.com/sutabi/lmap01.jpg
With in this I used a simple way of making a Point (style) lamp to create 360 deg of shadows.
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Make the Camrea Ortho
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Have your objects that you want to give off shadows to your landscape have a new material and set the Alpha[--------------[]] to 0.000 as well as click on the button [OnlyShadow]
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Now add a lamp
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Now before you render make sure that you land or render size is proportionalized to each other.
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render away! then just load up the image and replace you old image with the newly rendered image to your land.