I made a neat little light engine in flash that uses raycasting and a pixel-by-pixel rendering process for the lighting.  It’s a bit slow when the lights get big enough (and the grid is small enough), and there are definitely some areas that could use some optimization, but I’m really liking how it’s looking right now as-is.  Let me know if you have any ideas to make it better!

Controls:
<Left Click>: Places a light.
<Hold Space>: Interpolates between two colors for the dynamic light.