Best Dynamic Lighting method for levels?

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I can't help but laugh at Americans who think they're being clever demeaning British people. Without us, there would be no you. I repeat, YOU WOULD NOT EXIST.
At the very least you'd all be speaking french! Is that what you want!? You'd all be canadadian bacon hey.

Anyway seriously, Halo, a few issues pop up in my head trying to visulize your technique, again curved surfaces.

In case I'm doing an half arsed job of explaining it,
Imagine any non flat surface in game...(Like say a lamp shade, or a football. Any back ground non moving geo)

There's no way a plane can wrap around those sort of surfaces, as far as I can see. (Automatically that is, obviously nothing's impossible if you're manually wrapping the plane.. but then it wouldn't be a plane except for it's initial projection.

I'm not knocking it, just trying to understand how you're avoiding these problems, or if you just live with them?