I have the local light sources turned off in Orbiter launch menu and the problem still persists. I also found orbiter.log and this is all that is on it...
**** Orbiter.log
Build Aug 30 2010 [v.100830]
Timer precision: 4.73789e-007 sec
Found 0 joystick(s)
Devices enumerated: 4
Devices accepted: 3
==> RGB Emulation
==> Direct3D HAL
==> Direct3D HAL (Mobile Intel(R) 45 Express Chipset Family (Microsoft Corporation
Module AtlantisConfig.dll .... [Build 100830, API 100830]
Module AtmConfig.dll ......... [Build 100830, API 100830]
Module DGConfigurator.dll .... [Build 100830, API 100830]
Module CustomMFD.dll ......... [Build 100830, API 100830]
Module transx.dll ............ [Build 100824, API 100823]
Module ExtMFD.dll ............ [Build 100830, API 100830]
Module FlightData.dll ........ [Build 100830, API 100830]
Module Framerate.dll ......... [Build 100830, API 100830]
Module Rcontrol.dll .......... [Build 100830, API 100830]
Module ScnEditor.dll ......... [Build 100830, API 100830]
**** Creating simulation session
DirectDraw interface OK
Direct3D interface OK
Graphics: Viewport: Window 1274 x 772 x 32
Graphics: Hardware T&L capability: No
Graphics: Z-buffer depth: 32 bit
[highlight]Graphics: Active lights supported: -1[/highlight]