If your levels have any kind of detail you're not really going to be able to do dynamic quake style lights in Blitz. The problem is building the mesh. If you have a room lit by a dynamic light with any reasonable size radius, every polygon in that room and some from adjacent rooms is going to have to be added to a mesh and uploaded to the video card...blah blah blah blah blah
I told him to store a copy of each face in the map. Then you modify the map mesh by poking an extra surface into the internal Blitz surface list. Surfaces don't get z-ordered, so you get a nice blend of the light. You only are adding the faces that get affected by the light, so you only add a small number of polygons.
The brush structure of maps doesn't have to be very complicated, you just carve out the shape of the room, and then add staticmeshes.