Game Lighting

I've never had much of a problem with the lighting in the game. However, recently I started playing on Ultra settings and it seems it messes up all the lighting. For example, if there is a wall within a room as a divider, the lights shine right through it and to the other side of the wall.

Is anyone else noticing a problem with lighting in their games? Is it just the settings? I really don't want to play with my graphics on a lower setting just because of lighting...