Thanks for all of the comments and feedback guys. Sorry it has taken me a while to respond, as SecondDimension mentioned, I've been away and without internet access for a few days.
robin Sommer - I've been toying with the idea of a light based game but don't have any plans as of yet.
sqiddster - This isn't a shader (that would probably be a more efficient way of doing it), I'm just using some maths and the canvas plugin. I should've mentioned the canvas plugin in the original post as it is brilliant.
Venivididormi - I plan to post the .capx at some point (once I've cleaned it up a bit). It is math/loop heavy, I'm sure there is probably an easier way to do it but basically I project out the polygon away from the light source and draw it using the canvas plugin.
Sylvain - Will do, once I've cleaned it up a bit.
lemo - Thanks for the feedback. You're correct, the effect is highly exaggerated but perhaps I can explain my decisions. Firstly, shadows become exponentially bigger as the object casting the shadow gets closer to the light source. I've just exaggerated the effect because in the final version there will be fall off from the light which will blend with the shadow being cast (i.e. outside of the range of the light you won't be able to see the shadow). In the case of overlapping shadows, it is a problem as you note which is due to a glitch caused by multiple light sources. With multiple light sources you do get an overlapping shadow effect, see some examples: tinyurl.com/cd6o7yw and tinyurl.com/cqs7g8u. Although you can't see it, there are multiple light sources, close to each other, to create a soft shadow effect. I was just trying the effect out and need to fix it to get it to look right.
AnD4D - Thanks for the comments. In response to your question in the other thread, I use a lot of sub-events, local variables and functions in the files. So I spread the effect out over quite a few events. If I were to compress it down then I think that the flashlight would be around 30ish events and the lightingTest would be about 60-70.
spongehammer - Yes, there are actually multiple light sources all close together in the LightingTest example, I was playing around with creating a soft shadow effect.
— - As I mentioned above, I'll post the .capx files as soon as I've cleaned them up a bit. They require the canvas plugin to be installed.