Ive had a few problems in the past week, with my bsp disappearing from the playable map but remaining in the editor, weird. Anyway by reverting to a backup i got round that but havent been able to fathom why.
Spent some time playing with the particle emitter and managed to create a flame effect for my torches using sprites. Now all i have to do is populate the outside with more meshes and then sort out normal and specular maps.