Devils Child: The bad projection is when the light is not at the same position as the mesh with the cubemap. For dynamic cubemaps to look correct, the camera used to render the cubemap should be at the same position as the mesh that will recieve the cubemap, obviously the light moves around in the demo which causes an offset.
It might be possible to fix with some kind of offset texture matrix applied using a DLL, SetTransform(texLayer, D3DTRANSFORMSTATE_TEXTURE0+texLayer, matrixType).
It might be possible to fix with some kind of offset texture matrix applied using a DLL, SetTransform(texLayer, D3DTRANSFORMSTATE_TEXTURE0+texLayer, matrixType).