There's a 'cast' and 'receive' shadows checkbox for different scenery elements -- terrain, sim objects, buildings, vegetation. There's also a shadow quality slider, which for terrain shadows affects the distance of the terrain.
Shadows work a lot differently now, LM have really done a great job making this work well. There's now no need to flag a model for a 'volume' shadow, everything can cast realistic shadows, and respect the alpha transparency. So there's no need to flag things like glass as 'no shadow', and things like cross-plane trees which I used to flag 'no shadow' to prevent rectangular shadows can now display proper alpha shadows.
There's even a Shadow setting to over-ride the 'no shadow' flags so that FSX-style trees display with nice shadows.
