[RM2K3]

Make a pure black 320x240 image, then put a white circle or glow via photoshop or such other image program. You can do a smooth one with the radial gradient tool, or just overlay bigger and bigger white circles of varying transparencies ontop of each other like the example you posted.

Then in-engine you simply Show Picture command with the picture transparency to whichever. The white will be a visible glow. Make sure the Use Transparent color is off.