NPC Flashlights: If this option is enabled, Non-Player Characters (NPCs - i.e. However my FPS did improve from lowering this slider, so it can be a useful performance boost with no major drop in image quality. Experimenting with this setting I found no real visual impact as the slider position was changed. Lighting Distance: This slider controls the visibility distance of lighting sources in the game. This issue should be resolved as of the most recent patch. Update: As of the 1.0004 patch it seems that Grass Shadows do not appear even when enabled. Note that if Sun Shadows is disabled, Grass Shadows will also be disabled automatically. The image quality drop is not significant, so disable this option if you're struggling for FPS. If disabled, all grass-related shadows are removed, which can improve performance. Grass Shadow: If enabled, the grass in outdoor areas will have shadows of varying intensity. If you wish to turn off the Sun as a dynamic light source, disable this option, and your FPS will improve noticeably. While this greatly enhances the realism and atmosphere of the game, it can also greatly reduce performance.
Sun Shadow: When enabled, the Sun is a dynamic light source (depending on your Renderer chosen), and as such all objects can cast shadows from their exposure to the sun.