ok i made a waterlurker whith some kind of light, you could say it are the eyes of the monster 

what i did is making a bone in 3ds max at the waterlurker.dae (attached the bone to the model too)
in the model editor, i just attached a light to the bone i created 

 and voila 
 
i'll add a .rar file so you can see this example model 
link : 
http://www.megaupload.com/?d=WWSZGLRE
other variant : 
http://www.megaupload.com/?d=HSPW6YZ7
the problem is i can't select the waterlurker in level editor, but whith the object finder i can delete it too though 
