The Advanced Lighting rollout lets you select one of the advanced lighting options that accompany the default scanline renderer: either the Light Tracer or Radiosity.
The Light Tracer provides soft-edged shadows and color bleeding for brightly-lit scenes such as outdoor scenes. Radiosity provides physically accurate modeling of the light in a scene.
Until you choose an advanced lighting option, the Advanced Lighting panel displays a single rollout, Select Advanced Lighting.
The Light Tracer provides soft-edged shadows and color bleeding for brightly-lit scenes such as outdoor scenes. It is typically used in conjunction with a Skylight. Unlike radiosity, the Light Tracer does not attempt to create a physically accurate model, and can be easier to set up.
Radiosity is rendering technology that realistically simulates the way in which light interacts in an environment.
(Render Setup)