Rage, he's using the standard renderer. I didn't check out the larger image when I posted earlier so missed the grids.

Atlantica, what type of shadows are you using? Raytraced or depth map? Have you played with any of the attributes?

If you're using depth map shadows (which is what GI_Joe uses), try cranking the dmap resolution up for sharp shadows (1024). If you want softer shadows use a smaller Dmap like 128 or 256 and increase the dmap filter to 2 or 3. With so many lights, I would stick with the smaller resolution and increased filter otherwise you're computer will get bogged.

If you're raytracing and want a soft shadow, adjust the light radius and increase the shadowrays a bit...maybe start with 7 and go up or down from there. Be aware that increasing light rays will increase your render time.

Let us know if you get the problem solved.