Note: Another form of Indirect Lighting in blender is light (from a point or sun light source) bouncing off of objects and indirectly illuminating scene geometry. You can find examples of that at this link.
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Download .blend file
In the demo video, I was experimenting with various values for the "Error" attribute, ranging from small values (for which the mesh lighting is smooth) to large values (where the mesh lighting is blocky)
I did various test renders and documented the values used in the following slide show ...
Related article: Blender 2.5x : Lighting/Rendering Tests - Indirect Illumination
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