Hi jocco.

Thanks for the welcome back.
It looks like you may have incorrect settings in your GI tab. Maybe Use transparency, directional rays or Monte Carlo ? Hard to say without looking at the scene file. I'm not seeing shadows from your lights either. Also make sure you use LW 9.6+
The hot spots are just reflections from your luminous polygons. You may need to turn them down a bit.
You can load the scene in the resources file for part 1 to double check settings for GI and light placement.