I have been implementing the day night cycle code and it works fine however it seems to mess up shadows even with shdReduceFlicker and shdSoft turned on.

Artefacts appear mainly on staircases or other jagged objects, with streaking lines or dots running across them.

If I turn the shdReduceFlicker off, then the shadows work really nicely except for when the sun get directly overhead then there are major flickering problems.

Is there any way to prevent these problems or is it just a known problem when moving the main directional light (Sun)?

I don't think there is any way to solve this

Shdreduceflicker works only for static light but movable camera

Try to change that options:

Quote:D.shdMapNum(6);
D.shdMapSize(2048);
D.shdSoft(2);
D.shdJitter(true);
D.shdReduceFlicker(false);
D.shdFrac(1);
D.shdFade(1);
D.shdMapSizeLocal(0.8);
D.cldMapSize(100);

D.shdMapNum(6); //this is the default
D.shdMapSize(2048); //improves quality does not remove artefacts
D.shdSoft(2); //was already set to this
D.shdJitter(true); //didn't appear to do much different
D.shdReduceFlicker(false); //having this to false causes really bad flickering when sun is directly overhead
D.shdFrac(1); //this is the default
D.shdFade(1); //didn't appear to do much different from default
D.shdMapSizeLocal(0.8); //not using any local lights yet
D.cldMapSize(100); //makes no visible difference

@Esenthel: Sorry to bump this topic but I was wondering if you could look into potentially some fixes to these problems as it is one of my major concerns with the engine at the moment.

no, I don't know any way to solve this, not sure it's possible