I spent all morning trying everything I could think of but in the end the only thing i could figure out to get around it was to deflate the mesh when rendering the shadow before the blur pass. it did minimize the halo effect to almost non existant, but was wondering if there are any better ways i might not have thought of. I don't really want to use VSM just yet as i think that has it's own can of worms as far as issues go. and only want soft shadows at this stage.
below are a few pics showing the artifact and the current fix...
Thanks for any ideas.
Halo Artifact...
not a perfect fix but I can live with this over the halo...



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