Looking good man! For the pinching problem, wouldn't you just need a couple extra support loops at the sides, or have you left it like that intentionally?
http://wiki.polycount.com/SmoothingGroups Specifically, look at the text on the left of the image that talks about normals. That explains what soft edges from smoothing groups does.
Sythen: We are looking for a mysterious/depressing mood. Something that envoke the idea of a place where this magician left his memories/tricks. Thanks for the feedback on the light =)
Don't use the specular option in UE4 for your average specular textures, it's not going to work like how you expect it to, and it's mostly left in for legacy purposes.