Lighting tiled 3d terrains

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I'm having a lot of issues with tiled 3d terrains.

Simple case:

I used textured cubes to represented wall areas, and a global light pointing down at 45,45,0. Seams were visible between the cubes. These seams disappear if I point the light straight down -- 90, 0, 0 -- but then everything looks pretty flat.

The situation got considerable worse when I used a tiled floor (eventually infinite planes don't cut it) and had my character carry a point light source.

Sorry I can't post images since I've fixed these things using pretty major hacks (there are now struts covering the seams in the walls, and I'm creating the floor on the fly as a mesh surface.

Now I'm finding that point light sources work very poorly in general and wondering if I should give up on using lights for illumination completely and just use vertex lighting and/or "burn" lighting into my textures for every tile (which seems excessive not to mention costly in textures).



Any suggestions?