Seems per pixel shadows (shadow volume) are best for cramped, low poly environments, and best yet: Even a 1999 computer can do it!
I want my game to run absolutely smooth, even with a 64 mb on-board VRAM (like my Macbook, the only computer I own, the one I’m using Blender with), so if any of you guys happen to know, HELP ME OUT! PLEEEEAAAASSSSSSEEEEE!:spin::spin::spin:
EDIT: Anyone interested in this should go check out my other thread about the same thing: stencil shadow volume.
This would be a question to ask in the game engine support and discussion forum. Anyway, Blender’s game engine doesn’t support stencil shadow volumes, so you probably should forget about it for now. Hopefully BGE will get better shadows in the future.
If you really wanted to do it, it might be possible, using some hackish setup involving a second scene running alongside the first, use of glsl shaders, and render to texture. It’s just a crazy theory, though…