diff --git a/apps/openmw/mwrender/localmap.cpp b/apps/openmw/mwrender/localmap.cpp
index 4fa125c9b..1a4002b12 100644
--- a/apps/openmw/mwrender/localmap.cpp
+++ b/apps/openmw/mwrender/localmap.cpp
@@ -229,9 +229,9 @@ void LocalMap::render(const float x, const float y,
             vp->setVisibilityMask(RV_Map);
 
             // use fallback techniques without shadows and without mrt
-            vp->setMaterialScheme("simple");
+            //vp->setMaterialScheme("local_map");
 
-            rtt->update();
+            //rtt->update();
 
             // create "fog of war" texture
             TexturePtr tex2 = TextureManager::getSingleton().createManual(
diff --git a/apps/openmw/mwrender/renderingmanager.cpp b/apps/openmw/mwrender/renderingmanager.cpp
index 174a9e4f8..ca26697b7 100644
--- a/apps/openmw/mwrender/renderingmanager.cpp
+++ b/apps/openmw/mwrender/renderingmanager.cpp
@@ -76,9 +76,8 @@ RenderingManager::RenderingManager (OEngine::Render::OgreRenderer& _rend, const
     // Load resources
     ResourceGroupManager::getSingleton().initialiseAllResourceGroups();
 
-    // Due to the huge world size of MW, we'll want camera-relative rendering.
-    // This prevents precision artifacts when moving very far from the origin.
-    mRendering.getScene()->setCameraRelativeRendering(true);
+    // causes light flicker in opengl when moving..
+    //mRendering.getScene()->setCameraRelativeRendering(true);
 
     // disable unsupported effects
     const RenderSystemCapabilities* caps = Root::getSingleton().getRenderSystem()->getCapabilities();
@@ -525,12 +524,14 @@ Shadows* RenderingManager::getShadows()
 
 void RenderingManager::switchToInterior()
 {
-    mRendering.getScene()->setCameraRelativeRendering(false);
+    // causes light flicker in opengl when moving..
+    //mRendering.getScene()->setCameraRelativeRendering(false);
 }
 
 void RenderingManager::switchToExterior()
 {
-    mRendering.getScene()->setCameraRelativeRendering(true);
+    // causes light flicker in opengl when moving..
+    //mRendering.getScene()->setCameraRelativeRendering(true);
 }
 
 Ogre::Vector4 RenderingManager::boundingBoxToScreen(Ogre::AxisAlignedBox bounds)
diff --git a/apps/openmw/mwrender/shadows.cpp b/apps/openmw/mwrender/shadows.cpp
index 9a4ae7243..1bea14530 100644
--- a/apps/openmw/mwrender/shadows.cpp
+++ b/apps/openmw/mwrender/shadows.cpp
@@ -53,7 +53,7 @@ void Shadows::recreate()
 
     mSceneMgr->setShadowTextureSelfShadow(true);
     mSceneMgr->setShadowCasterRenderBackFaces(true);
-    mSceneMgr->setShadowTextureCasterMaterial("depth_shadow_caster");
+   // mSceneMgr->setShadowTextureCasterMaterial("openmw_shadowcaster_default");
     mSceneMgr->setShadowTexturePixelFormat(PF_FLOAT32_R);
     mSceneMgr->setShadowDirectionalLightExtrusionDistance(1000000);
 
@@ -111,7 +111,7 @@ void Shadows::recreate()
     // --------------------------------------------------------------------------------------------------------------------
     // --------------------------- Debug overlays to display the content of shadow maps -----------------------------------
     // --------------------------------------------------------------------------------------------------------------------
-    /*
+
 	OverlayManager& mgr = OverlayManager::getSingleton();
 	Overlay* overlay;
 	
@@ -157,7 +157,7 @@ void Shadows::recreate()
 		overlay->add2D(debugPanel);
 		overlay->show();
 	}
-    */
+
 }
 
 PSSMShadowCameraSetup* Shadows::getPSSMSetup()
diff --git a/apps/openmw/mwrender/water.cpp b/apps/openmw/mwrender/water.cpp
index 666161052..311df9169 100644
--- a/apps/openmw/mwrender/water.cpp
+++ b/apps/openmw/mwrender/water.cpp
@@ -336,7 +336,7 @@ void Water::applyRTT()
         vp->setBackgroundColour(ColourValue(0.8f, 0.9f, 1.0f));
         vp->setShadowsEnabled(false);
         // use fallback techniques without shadows and without mrt (currently not implemented for sky and terrain)
-        vp->setMaterialScheme("simple");
+        //vp->setMaterialScheme("water_reflection");
         rtt->addListener(this);
         rtt->setActive(true);
 
diff --git a/components/nifogre/ogre_nif_loader.cpp b/components/nifogre/ogre_nif_loader.cpp
index d12a78114..f33ac2364 100644
--- a/components/nifogre/ogre_nif_loader.cpp
+++ b/components/nifogre/ogre_nif_loader.cpp
@@ -276,6 +276,8 @@ void NIFLoader::createMaterial(const String &name,
         else
             warn("Unhandled alpha setting for texture " + texName);
     }
+   //else
+        //instance->getMaterial ()->setShadowCasterMaterial ("openmw_shadowcaster_noalpha");
 
     // As of yet UNTESTED code from Chris:
     /*pass->setTextureFiltering(Ogre::TFO_ANISOTROPIC);
diff --git a/extern/shiny b/extern/shiny
index 88a192a67..d25605ee3 160000
--- a/extern/shiny
+++ b/extern/shiny
@@ -1 +1 @@
-Subproject commit 88a192a67d7dff636be4540be4a8654ad33f106a
+Subproject commit d25605ee3a2d67dc0b6367cd150cc6d0c6a3b661
diff --git a/files/materials/objects.mat b/files/materials/objects.mat
index 58c9a17bc..324fe1b2a 100644
--- a/files/materials/objects.mat
+++ b/files/materials/objects.mat
@@ -14,6 +14,9 @@ material openmw_objects_base
     scene_blend default
     depth_write default
     alpha_rejection default
+    shadow_transparency true // use diffuse alpha as mask for shadow
+    
+    shadow_caster_material openmw_shadowcaster
 
     pass
     {
diff --git a/files/materials/objects.shader b/files/materials/objects.shader
index e066b43cc..831699364 100644
--- a/files/materials/objects.shader
+++ b/files/materials/objects.shader
@@ -72,7 +72,7 @@
         shInput(float3, normalPassthrough)
         shInput(float3, objSpacePositionPassthrough)
         shUniform(float4 lightAmbient)                       @shAutoConstant(lightAmbient, ambient_light_colour)
-        shUniform(float passIteration)                       @shAutoConstant(passIteration, pass_iteration_number)
+        //shUniform(float passIteration)                       @shAutoConstant(passIteration, pass_iteration_number)
         shUniform(float4 materialAmbient)                    @shAutoConstant(materialAmbient, surface_ambient_colour)
         shUniform(float4 materialDiffuse)                    @shAutoConstant(materialDiffuse, surface_diffuse_colour)
         shUniform(float4 materialEmissive)                   @shAutoConstant(materialEmissive, surface_emissive_colour)