Can anyone please give me some tips on how to fix this problem?
thanks

very wierdOk, I've checked the code and it works fine, the problem with the sunlight is that the skybox itself is casting a shadow on static meshes
collisions are a massive problem for me as well as I can just walk up to a wall mesh and go right through it (even jump right though the ceiling part of the mesh.genesis collision routines are the problem here
I did that ( made it to max size without compiler tossing it out) and it got me nowhere.so just make the skybox large enough (skybox should be ~10000 texels away from the static mesh in the direction the light is coming from) and the lighting should be ok.