First off: Thank you Cmdu76 for picking this project up!
Secondly, maybe this has been mentioned before, and there is probably a simple answer for it, but shouldn't the light be blocked by the side of the object that is facing it? I took some screenshots to help explain that. Look at the following.
Everything looks fine when you draw whatever is blocking the light. Check out what happens when you don't though.
The side of the box
opposite to the light is blocking the light.. For most people this probably isn't a problem; however, in my project, I don't plan to draw the light blockers. Maybe this is intentional, I'm not sure, maybe you could look at it Cmdu76?
To further explain what I mean, I edited the second image to produce what I would expect the result to be.
(Or similar to this)
EDIT::
To, again, further explain, I would expect the result to be the above because we are lighting in a 2D world, meaning the side of the block facing us could have any depth, in a 2D world that wouldn't be measure. For the light to shine on the side of the block facing the player we would have to assume the light is 3D, that is, it has enough depth to light the top of the block, and it is also positioned closer the the player, meaning it is on a different plane that the object it is shining light on.