OK, doing your modifications (I had no idea that capitalization mattered) I was able to get the level to run, but the light still won't deactivate. I'm starting to think it's an engine error and not a scripting error on my part.
HOWEVER, being the cunning SOB I am, I came up with a solution. I raised the spotlight above the ceiling, moved it back a bit, and changed the FOV and Aspect to compensate so it gave the same general ray of light it did before, and now that it's up out of player sight (You can't see the spotlight source obviously, but out of where the player could see if you could) I put a small box directly in front of it and set the box to static physics so it won't fall. Now when I want to "activate" the light, I just deactivate the box which in turn lets the light through.
One less thing I have to worry about
Thanks guys, I'll post again once I'm ready to release it or if I have any more problems.