Dynamic Lighting

I have been trying to get dynamic lighting/shadows to work in Gmod, and i have no clue why it doesn’t work.
I set my direct x level to 110 (mat_dxlevel 110) since i read that it should work that way.
All it does is make the area which i use a lamp on, look nicer.
I even followed the instructions correctly, and when i do one of them (the command which removes valve’s shadow) it just removes the prop/ragdoll, etc’s shadow.
When i am in that dark room in gm_construct, the lighting *somewhat *works…though if i put the ragdolls arm over it’s chest, it doesn’t display the shadow on it.
I also am trying to get it so dynamic lighting works on maps like this: http://www.youtube.com/watch?v=185Me5kgFMQ
I am not fully sure if it is my Hardware.

Windows 7 Home Premuim 64 Bit
Intel Core i7-3610QM @ 2.3 GHz (Turbo Technology)
Intel HD 4000

I don’t recommend you bother with dynamic shadows; your graphics card is integrated (ie, shit)