I upgraded my video card driver and decided to see if I could finally get some shadows working in Second Life. Hamlet had posted a link to a wonderful description of the steps to take in V2 so I tried it. Above is before...........below is after.
I second Banana's word of caution.....make sure you are all set up for the photo before you turn on the shadows. You won't be moving around much once they're enabled.
V2 Beta has different settings but I haven't figured out if they're operational yet. :)