I don't know if this is a good idea, but you can trace the position of the terrainground under the entity and create a tga-shadow-sprite on this place...
Spiele zu spielen ist Übung, sie zu machen Kunst!(Zitat)
Hi Create a block the same size as the terrain and place it under the terrain give it a standard texture, and naturally shaded mode, if the terrain is too big put more blocks together, to me works perfect..