How do you make scenery that blends into the enviroment? I've seen people do this before, but I just can't figure it out.

What I mean:

The default lights fade from a yellowish color to a dark black-brown color. I've seen maps that have lower alpha (opacity) for the darker parts of the light, creating a blend effect. How is this done?

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this is how!

Yeah you can take advantage of .png files and their alpha-layer support, which works with Soldat.
Just make a scenery file with any decent image editor having lower opacities on those areas of your likeness, then save to an alpha-layer supporting .png file
In PaintShop Pro you can do this by following these steps:
-> File menu
-> Save as
-> select type: Portable Networks Graphics (*.png)
-> Optons button
-> Run Optimizer button
-> Transparency tab
-> Alpha layer transparency option (make sure the pallette was set to 16 million -24 bit- or greyscale -8 bit-)
Then save your file! Load it in polyworks (the only map making software that has .png support, afaik) and there, you have a kickass blending scenery.

The GIMP is basically a program like photoshop/paintshop pro but its completely free and MUCH easier to use (and learn to use). About the most difficult part with making a new image is you gotta click the layer tab (use the window that opens on the start for all the tools etc, rather than a palette bay like PSP or palette windows like photoshop/polyworks has), then right-click on your layer "Background" and click 'add alpha channel'. Now just use erase tool, color erase, or cut areas of the image and they turn into an alpha channel when you save. You have to save them as a type that supports alpha channels though (like .png, .psd (photoshop image, gimp supports it...?!), .xcf (gimps image type), .gif etc etc) If it only supports png well there you go for soldat... but this can make animations, banners, skins, and lots of other things.

gimp rocks your socks

I went to the link Pride gave me, but PolyWorks didn't detect the .png's. :(

Also, I've already been using PolyWorks and the GIMP for a while.

I'll try making the lights with the GIMP, though.

That must mean you have an old version of PW.

Oh. I never thought of that. Thanks!