The ground looks a lot better. The only problem with shadows now is on the barrels. To fix that, you probably need to use a different phong value on each barrel. In the value box for the surface properties, just enter some different number for each barrel. You don't want the top of the barrels to be phong shaded though, so leave the value at 0 there. Any barrels touching each other should have a different phong value, otherwise they'll try to blend together.
Edit: Beta 10 has been put up on the beta server for testing.