From TDN

WorldEditor Setup

Here are some details about the specifics for the datablocks such as the sun, sky, etc...

Sky

The basic sky does not use any textures, unless for a specific effect. The sky is determined using a given set colours and with a distant fog, unless for a specific effect (fog only). Set the sky using the following:

Fog – 3000
Fog Colour – 0.300000 0.300000 0.900000 1.000000
//(Same as the Sky colour, unless for a specific effect)
...

Sky Colour – 0.300000 0.300000 0.900000 1.000000
useSkyTextures = "0";

The Sun

By controlling the Sun's ambient power, you will be able to get rid of soft shadows on your models. Currently, this workds best when outside. Models on a DIF will remain lit with soft shadows.

Set the Ambient value of your sun to 1,1,1,1 making sure it retains the additional zeros, as required by Torque.

new Sun() {
azimuth = "0";
elevation = "20";
color = "0.000000 0.000000 0.000000 1.000000";
ambient = "1.000000 1.000000 1.000000 1.000000";
locked = "false";
rotation = "1 0 0 0";
scale = "1 1 1";
position = "0 0 0";
direction = "0.57735 0.57735 -0.57735";
};

A Screenshot is to be added.