The advanced lighting support now provided with 3ds max 5 lets you improve the realism of rendered scenes. There are two advanced lighting options. Both of them generate global illumination: illumination that comes from light that bounces off scene objects. Characteristically, global illumination does not require as many light objects in your scene. It can also create color “bleeding,” where the color of one object can reflect onto another.
The two advanced lighting options are:
The Light Tracer option is easy to use, and does not require photometric lights. The Light Tracer is most effective for outdoor and brightly lit scenes.

Light tracing creates the shadows in an outdoor scene.
Radiosity is a physically accurate lighting simulation. It requires that your scene be built to scale, and it is easier to use with photometric lights (see below).

Radiosity creates an accurate model of lighting in an art gallery
Photometric lights are similar to standard 3ds max lights, but they accurately model the intensity, color, and distribution of lights in the real world. Because photometric lights use real-world intensity values, they rely on accurate scaling in your scene. Use photometric lights with radiosity to obtain physically accurate lighting in your renderings.

A photometric light with a 60W bulb's intensity cannot light a model of a city.
Photometric light types include linear lights and area lights.
Several new options help you light an outdoor scene:
Skylight is a texturable dome light that is not photometric.
IES Sky is similar to Skylight, but is photometric.
IES Sun is a photometric sun source.
The Daylight system is similar to the Sunlight system in previous versions, but it is physically accurate and uses both IES Sun and IES Sky.

Tank rendered using a Skylight
Two new shadow types are provided with 3ds max 5:
Advanced Ray-Traced Shadows add functionality to ray-traced shadows, and work better with the new light types.
Area Shadows simulate the shadows cast from an area light.

Area shadows have diffuse edges.
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