Torchlight has been an issue for me since day one. Because by using any form of lighting the low poly nature of my game looks really ugly and out of place. I have been using ambient light which affects the entire world.
So having a torch that lights only the surrounding area has proven to be a pain.
So how did I do this? Cylinders...
I placed 5 cylinders around my player, painted them black and flipped their polygons inside out, then scaled them out around my player and made them partially transparent.
You can see the step between the first couple of cylinders but I'm sure I can smooth that out a bit yet and if not its not so bad.