T3D 1.1 Beta 1 - Terrain cleared with Clear Terrain tool continues to cast shadows - RESOLVED

Build: 1.1 Beta 1

Platform: Windows XP SP3

Issue: Terrain cleared with the Clear Terrain tool continues to cast shadows. This issue occurs both with the sun light, and with point lights. Probably occurs with all lights though not all have been tested. This makes entrance lighting to a cave, or tunnel, a bit of a problem. It also prevents setups such as aligning a cave with the sun so that it shines down it at a certain time of day. Shadow casting goes both ways as terrain was set as double sided during the first betas to fix the sun shining through the bottom of the terrain thus casting odd shadows from the skirts.

Steps to Repeat:
Make a hole in the terrain big enough to fit the default player through.
Put some cave geometry in to fill the hole. ConvexShapes with the Sketch Tool will do.
Position a point light near where the terrain would be if it hadn't been cleared.
Move point light around and observe the shadow. (It took me a while to realize it was the terrain causing it...)