Have you guys seen NVidia's real-time Gas Station demo?  It uses radiosity 
& soft-shadows.  The radiosity must have been done in another renderer and 
applied as texture maps.  The lighting and soft shadows seem to be done in 
real-time.

Is there a way to use Povray to render the required texture maps to use in 
real-time 3D?  I guess it would involve to take each object's side, one at 
a time, render it with an orthogonal camera, scaled to the objects's field 
of view, with the rest of the objects in the scene to "no_image", or 
something like that?

They have a video of the Gas Station demo available:
(you need to put following three lines on one for link)

http://www.nvidia.com/content/5900_videos/index_dl_720.asp?
task=settings&video=http://download.nvidia.com/downloads/5900
_videos/demos/Gas_Station_Demo

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