Turns out this is a known issue: https://forums.unrealengine.com/unreal-engine/feedback-for-epic/106544-dynamic-shadows-artifacts?133869-Shading-problem-in-4-14=&viewfull=1
There most definitely is :) Realtime dynamic lighting and shadowing in only 7 colors, well technically 14 colors, 7 shades of blood and 7 shades of everything else lol.
Update on WA: Monolith 6 ArenaNet 14 Microsoft Game Studios (?) BlackPowder Games (?) NST (Nintendo Software Technology) (?) //Snowblind no longer exists. (Merged with other studio)
That link is kinda funny just look at that, eventhough you seem to have read it you stick to your memory optimizer... http://www.tweakhound.com/windows7/tweaking/14.html