Greetings. I happen to have another problem with the Blender Internal Engine. To give you a visual understanding of my situation, let’s say you make a cube. You want your camera to go inside the cube, so it will be fairly large. Then, you want to add a point light inside of the cube. This will work fine as long as you haven’t tweaked any of the rendering options, but the moment Ambient Occlusion is turned on, you’ll notice that the point light does nothing. I actually had this problem a year ago, but it has come back to haunt me again. Any help is very appreciated.
Not a visual representation. Use screenshots or other images to help you explain (whole Blender interface) and include an example .blend file for quick troubleshooting and for producing visuals when writing back to you.
AO with a point light works for me on 2.75, just have to adjust the settings. Default attenuation distance is 10, which is how far geometry can occlude ambient light. Point light is a light source from a single point in 3D space, and default AO mode is add. Could start by making sure the AO actually does something and adjust the distance to be more suitable for the geometry, and then set the intensities for both the AO and lamp.