I have not tested the flag on a object, just a player model and weapon.
Before starting the steps what I have found so far is that it appears you can't have the mesh have more than 1 texture on it. The mesh can only pull from 1 texture. However, I'm still testing this so maybe there can be more. Also I havn't removed the sun flare from my .fx file so I don't know if there has to be a flare or not but right now I have a sun in the map and it works.
Instructions:
1)Make sure your global lighting placed in Zero Editor has the "Cast Specular" on yes
2)Using the Battlefront 1 edit flag, select your polygons with the U key, (Basicly just ctrl+A to select all the polys) then open the edit flag dialog box. Scroll down to Render Specular under the Render Types and hit ok. You do not need to call out a texture or anything.
3)Munge the map and your done.
Options:
You can adjust the angle of your placed light in Zero Editor to change when the light hits on the mesh.
The ending effect is below. The pic are from looking in different directions, you can see the lighting has changed.



