Lights are now movable, wasn't too bad. There is now the concept of 'helper' objects you can attach to a light so you can represent a light with some basic geometry and have a picking target.
The next issue will be to work out more finer grained picking, the current picking uses AABBs for the models, so if a model has a tall point, the top of the AABB is pretty high. This causes issues with trying to pick objects inside its bounds.
The question is whether to build some kind of picking stack to allow you to move further down the targets hit by the ray, or wait until the physics engine is plugged in and I have better collision detection on the models.