In the manual for the Shadow Light object, we read, "When using a light radius, avoid placing the light very close to or directly over a shadow caster. Shadows can fail to render correctly in these circumstances."
This is quite evident during my tests to understand how this new feature works as getting up close to a Shadow-casting object usually results in the shadow disappearing altogether, regardless of the settings of light height or light radius.
My ultimate question, then, is how to best work around this. My basic set up presently includes two objects - one with the 8Direction movement behavior and the other with the Solid behavior. I position and pin the Shadow Light object on the moving object, as well.
One environment I'm envisioning is series of hallways and corridors...