each car and track was hex edited to swap daytime shadows for night time lights and each car was given a 'dummy' headlight beam via an extra .kn5 model loaded with lods.ini
If it doesn't look right, don't implement it. Although it's a good effort, it looks crap when there's no actual lightsource from the headlights.
If AC2 is coming, I think we can expect nightracing as it could/should look: