First create a spotlight. Change Decay Rate to Quadratic. This will give us a more realistic falloff to our light. To compensate for this falloff, increase the intensity to 50000. Increase the cone angle to around 110 and the dropoff to 1. Turn on Use Raytrace Shadows on the spotlight and slightly increase the light radius to 0.010. This will give us a soft edge to our raytraced shadows. ...