Hi!
You might simply uncomment these lines

fog_color = 1;
camera.fog_start = 5;
camera.fog_end = 800;

in the effect_startup function of the NM wdl. They were probably for testing.

@ Guitar: I found out, whatīs causing the problem with stencil shadows. It has nothing to do with the shader. The problem is, as soon as thereīs a skin with alpha channel, the engine "thinks" itīs transparent and refuses to render stencil shadows. Well I need the alpha channel for specularity control. If I use a 24bit texture, the stencil shadows work, but I have too much specularity.
I tried
my.transparent = off;
and my.flare = off;
but it didnīt help. I think someone here in the forum has mentioned this problem sometime ago ...