BattleTanks II Beta Release

Try this:

Texture = LoadTexture("Shadow.png", 1+2)
ShowShadow Entity, Texture
ShadowScale Tank\Mesh, 1.0
ShadowViewDistance Tank\Mesh, 100

And don't forget to add a

UpdateShadows Camera

inside your main loop or the shadows won't show up.

Here's the image I use:


Note: The shadows are only casted on terrains, not meshes.