Tiled based lighting that is put in a lightmap as a single grayscale pixel and is then scaled up and (with a shader?) smoothed out so that it looks non-tiled. This approach is similar to what I've seen (herehere), but is done in xna and I'm not sure if there is a BlendState equivalent thing. I also had never done anything with shaders and my attempt at smoothing out the tiles ended after I could only smooth them horizontally or vertically (not in a circle as it should be).
Raycasting and drawing each pixel with a certain alpha value for the distance it is away from the light source. This approach is the one that worked, but was inefficient. The first problem I encountered with this is that raycasting with around 360 rays per point light missed a bunch of pixels. I solved this by then using a shader to make a black pixel within the radius of a light the proper color if it was next to at least two non-black pixels, so that it wasn't a shadow. This worked, but sadly, it was far too inefficient, dropping about 300 FPS per light. But did bring me close to what I want, and I would post a picture, but sadly I'm limited to two links :(
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