Yeah, Jaydolan, you were right from the start, i failed big. Tried what you said and worked, what i don't understand is why it says on ClanWos' webpage that its only for dynamic lighting when from what you have shown, affects static too. Interesting.
I've always been using the following settings for software and OpenGL renderers (my client is pretty much vanilla 3.21 build from icculus.org sources):
// X11 video settings set sw_mipcap 10000 set sw_mipscale 10000
// GLX video settings set vid_gamma .3 set gl_modulate 2 set intensity 2 Full config available here [GitHub]. These are for FreeBSD/X.Org on some lousy ATI card; not sure how would it look on Wind0ze. ;-) For taking screenshots though, I have to bump GLX values to some insane numbers, otherwise they come out really dark.