After installing the OpenAL got it running (previous verson worked too). Flashlight was still buggy, showed poly seams and some cases produced stray streaky looking polygons which were either black or white. Log:
Initializing engine... Leadwerks Engine Version 0.2.5 OpenGL Version 1.3.0 - Build 4.14.10.3865 OpenGL Vendor: Intel OpenGL Render Device: Intel 855GM CPU Vendor: GenuineIntel CPU Name: Intel(R) Celeron(R) M processor 1500MHz CPU Speed: 1496 MHz OpenGL extensions supported: GL_ARB_multitexture GL_ARB_point_parameters GL_ARB_texture_border_clamp GL_ARB_texture_compression GL_ARB_texture_cube_map GL_ARB_texture_env_add GL_ARB_texture_env_combine GL_ARB_texture_env_dot3 GL_ARB_texture_env_crossbar GL_ARB_transpose_matrix GL_ARB_vertex_program GL_ARB_window_pos GL_EXT_abgr GL_EXT_bgra GL_EXT_blend_color GL_EXT_blend_func_separate GL_EXT_blend_minmax GL_EXT_blend_subtract GL_EXT_clip_volume_hint GL_EXT_compiled_vertex_array GL_EXT_cull_vertex GL_EXT_draw_range_elements GL_EXT_fog_coord GL_EXT_multi_draw_arrays GL_EXT_packed_pixels GL_EXT_rescale_normal GL_EXT_secondary_color GL_EXT_separate_specular_color GL_EXT_stencil_wrap GL_EXT_texture_compression_s3tc GL_EXT_texture_env_add GL_EXT_texture_env_combine GL_EXT_texture_filter_anisotropic GL_3DFX_texture_compression_FXT1 GL_IBM_texture_mirrored_repeat GL_NV_blend_square GL_NV_texgen_reflection GL_SGIS_generate_mipmap GL_WIN_swap_hint Max texture size: 2048 Max cubemap size: 1024 Max texture units: 4 Max shader texture units: 16 Max multisample: 0 Max anisotropy: 2 Max clip planes: 6 Max lights: 16 Shadows supported: 0 Shaders supported: 0 Loading Plugins... Loading plugin "smf.dll"... Loading plugin "stf.dll"... Loading plugin "textureformats.dll"... Loading plugin "vtf.dll"... Loading materials... Loading models... Loading sounds... Sorting media... <Error>: Missing texture "dev\skybox" Initializing OpenAL... EAX supported. OpenAL initialized successfully. Engine initialized successfully Loading world "maps\demo_map_warehouse_only.3dw"... Spawning object "light05" Loading model "warehouse\light05"... Loading 3dw "C:/MIKE/Demos_Blitz3D/leadwerks_engine/Models/warehouse/light05.3dw"... Initializing physics... Newton version 1.53 Physics initialized successfully. Creating convex collision primitive... Building compound collision shape from 1 primitives... Spawning object "light05" Building compound collision shape from 1 primitives... Spawning object "wh_palette01" Loading model "warehouse\wh_palette01"... Building collision bounding box... Spawning object "light05" Building compound collision shape from 1 primitives... Spawning object "crate" Loading model "props_physics\crate"... <Error>: Missing texture group "packingcrate" <Error>: Missing texture "packingcrate\packingcrate_diff" Building collision bounding box... Spawning object "crate" Building collision bounding box... Spawning object "oildrum" Loading model "warehouse\oildrum"... Loading 3dw "C:/MIKE/Demos_Blitz3D/leadwerks_engine/Models/warehouse/oildrum.3dw"... Creating cylinder collision primitive... Building compound collision shape from 1 primitives... Spawning object "oildrum" Building compound collision shape from 1 primitives... Spawning object "sunbeams" Loading model "env\sunbeams"... Spawning object "sunbeams" Spawning object "sunbeams" Spawning object "gascan1" Loading model "warehouse\gascan1"... Loading 3dw "C:/MIKE/Demos_Blitz3D/leadwerks_engine/Models/warehouse/gascan1.3dw"... Creating convex collision primitive... Creating convex collision primitive... Building compound collision shape from 2 primitives... Spawning object "wh_boxclosed1" Loading model "warehouse\wh_boxclosed1"... Building collision bounding box... Spawning object "wh_boxclosed1" Building collision bounding box... Spawning object "wh_desk1" Loading model "warehouse\wh_desk1"... Loading 3dw "C:/MIKE/Demos_Blitz3D/leadwerks_engine/Models/warehouse/wh_desk1.3dw"... Creating convex collision primitive... Creating convex collision primitive... Creating convex collision primitive... Creating convex collision primitive... Creating convex collision primitive... Creating convex collision primitive... Creating convex collision primitive... Creating convex collision primitive... Building compound collision shape from 8 primitives... Spawning object "wh_chair01" Loading model "warehouse\wh_chair01"... Loading 3dw "C:/MIKE/Demos_Blitz3D/leadwerks_engine/Models/warehouse/wh_chair01.3dw"... Creating box collision primitive... Creating box collision primitive... Creating box collision primitive... Creating box collision primitive... Creating box collision primitive... Creating box collision primitive... Building compound collision shape from 6 primitives... Spawning object "wh_boxclosed1" Building collision bounding box... Spawning object "girder" Loading model "warehouse\girder"... Spawning object "girder" Spawning object "girder" Spawning object "girder" Spawning object "girder" Spawning object "girder" Spawning object "whshelf01" Loading model "warehouse\whshelf01"... Loading 3dw "C:/MIKE/Demos_Blitz3D/leadwerks_engine/Models/warehouse/whshelf01.3dw"... Creating box collision primitive... Creating box collision primitive... Creating box collision primitive... Creating box collision primitive... Creating box collision primitive... Creating box collision primitive... Creating box collision primitive... Creating box collision primitive... Creating box collision primitive... Creating box collision primitive... Building compound collision shape from 10 primitives... Spawning object "whshelf01" Building compound collision shape from 10 primitives... Spawning object "whshelf01" Building compound collision shape from 10 primitives... Spawning object "whshelf01" Building compound collision shape from 10 primitives... Spawning object "supportbeam" Loading model "warehouse\supportbeam"... Spawning object "supportbeam" Spawning object "supportbeam" Spawning object "supportbeam" Spawning object "supportbeam" Spawning object "supportbeam" Spawning object "supportbeam" Spawning object "supportbeam" Spawning object "supportbeam" Spawning object "supportbeam" Spawning object "whshelf01" Building compound collision shape from 10 primitives... Spawning object "whshelf01" Building compound collision shape from 10 primitives... Spawning object "whshelf01" Building compound collision shape from 10 primitives... Spawning object "whshelf01" Building compound collision shape from 10 primitives... Spawning object "whshelf01" Building compound collision shape from 10 primitives... Spawning object "whshelf01" Building compound collision shape from 10 primitives... Spawning object "whshelf01" Building compound collision shape from 10 primitives... Spawning object "whshelf01" Building compound collision shape from 10 primitives... Spawning object "railing_long" Loading model "Industrial\railing_long"... <Error>: Missing texture group "road_textures" <Error>: Missing texture "road_textures\road_base2" Building collision bounding box... Spawning object "wh_boxclosed1" Building collision bounding box... Spawning object "wh_boxclosed1" Building collision bounding box... Spawning object "wh_boxclosed1" Building collision bounding box... Spawning object "wh_boxclosed1" Building collision bounding box... Spawning object "wh_boxclosed1" Building collision bounding box... Spawning object "wh_boxclosed1" Building collision bounding box... Spawning object "wh_boxclosed1" Building collision bounding box... Spawning object "wh_boxclosed1" Building collision bounding box... Spawning object "wh_boxclosed1" Building collision bounding box... Spawning object "railing_end" Loading model "Industrial\railing_end"... Spawning object "railing_stairs" Loading model "Industrial\railing_stairs"... Loading 3dw "C:/MIKE/Demos_Blitz3D/leadwerks_engine/Models/Industrial/railing_stairs.3dw"... Creating convex collision primitive... Building compound collision shape from 1 primitives... Spawning object "railing_end" Spawning object "railing" Loading model "Industrial\railing"... Building collision bounding box... Spawning object "railing_stairs" Building compound collision shape from 1 primitives... Spawning object "railing_end" Spawning object "railing_end" Spawning object "railing_stairs" Building compound collision shape from 1 primitives... Spawning object "railing_end" Spawning object "railing_stairs" Building compound collision shape from 1 primitives... Spawning object "railing_end" Spawning object "railing_end" Spawning object "railing" Building collision bounding box... Spawning object "railing_end" Spawning object "railing_end" Spawning object "railing" Building collision bounding box... Spawning object "railing" Building collision bounding box... Spawning object "railing" Building collision bounding box... Spawning object "railing" Building collision bounding box... Spawning object "railing_end" Spawning object "fusebox" Loading model "Industrial\fusebox"... Spawning object "wh_railing01" Loading model "warehouse\wh_railing01"... Building collision bounding box... Spawning object "wh_railing01" Building collision bounding box... Spawning object "gascan1" Building compound collision shape from 2 primitives... Loading texture "metal\metalwall01a"... Loading texture "metal\metalwall01j"... Loading material "dev\caulk"... <Error>: Unknown material property "seethrough" <Error>: Unknown material property "nohit" Loading material "metal\metalwall01h"... Loading texture "metal\metalwall01h_a"... Loading material "concrete\concretefloor01d"... Loading texture "concrete\concretefloor01d_a"... Loading texture "metal\metalwall01g"... Loading texture "metal\metalwall03b"... Loading texture "warehouse\rustymetal01"... Loading texture "metal\metal02"... Loading texture "warehouse\wh_diamsteel1"... Loading material "warehouse\wh_window1"... Loading texture "warehouse\wh_window1a"... Loading material "concrete\concretefloor01f"... Loading texture "concrete\concretefloor01f_a"... Loading texture "warehouse\wh_concrete2"... Loading texture "warehouse\wh_lrgdoor1"... Loading texture "warehouse\wh_grate1"... Loading texture "dev\portalzone"... Loading solid entity "portalzone"... Loading entity "spotlight"... Loading entity "spotlight"... Loading entity "spotlight"... Loading entity "corona"... Loading entity "anchor"... Loading entity "anchor"... Loading entity "anchor"... Loading entity "env_cubemap"... Loading entity "anchor"... Loading entity "sprite"... Loading entity "corona"... Loading entity "corona"... Loading entity "sprite"... Loading entity "sprite"... Loading entity "ambientnoise"... Loading entity "ambientnoise"... Loading entity "ambientnoise"... Loading entity "anchor"... Loading entity "env_cubemap"... Building entity hierarchy... Finished loading world... Building world... Building BSP... World built in 1854 msecs. Loading material "warehouse\wh_wood01"... Loading texture "warehouse\wh_wood01"... Loading texture "warehouse\shelfskin02"... Loading texture "warehouse\wh_palette01"... Loading texture "warehouse\wh_box1"... Loading texture "warehouse\beamskin"... Loading material "metal\base1"... Loading texture "metal\base1_a"... Loading material "sfx\spotlight2"... Loading texture "sfx\spotlight2"... Starting main loop... Loading texture "sfx\flare1"... Loading material "warehouse\gascanskin1"... Loading texture "warehouse\gascanskin1"... Loading texture "warehouse\rustymetal1"... Loading material "warehouse\innerlight1"... Loading texture "warehouse\innerlight1"... Loading material "props_physics\crate"... <Error>: Unknown material property "vertshader" <Error>: Unknown material property "fragshader" Loading texture "props_physics\crate"... Loading material "warehouse\oildrum_material_0"... Loading texture "warehouse\oildrum_material_0"... Loading material "sfx\sunbeam"... Loading texture "warehouse\yellowpaint1"... Loading texture "sfx\flashlight"... Loading texture "sfx\lineargradient"... Stopping engine... Stopping physics... End