http://www.akilling.org/akg/default.asp?akg=tutlights
Don't use pure white lighting. Make it a little grey add a little yellow into it or what not for the light. Don't place a basic light right next to the source, you'll get that ugly white spot on the ceiling, move it away from it. Check that stuff out, compile, test, and observer.
Thanks thats pretty helpful. But I already knew the basic stuff, like:
Light_spot + light = pwn
and
Don't use pure white lighting
Then again thats about all there is to making realistic lighting. I was hoping for something like what Penguin linked to (thanks for that). But I also set up this thread to kind of help other lighting newbies.