the common way is decals. Sprites, aligned to the wall. As you said you want something diffrent. If (and that's not likely) every wall in your game is using its own texture, then you could draw directly to the texture buffer. Although this isn't very fast (especially if you don't use Flag 256, while at the other hand the usage of flag 256 disables mipmapping and makes things slow in general), it would allow to have the holes, traces whatever right on the textures. An other method would be to draw to the lightmap texture, assuming your walls are lightmapped and use conventional 2nd layer lightmapping (not vertex lighting of something hybrid).
So, basicly, if I was you, I'd try to draw to the lightmap, and if the speed is too slow, I'd use sprites noneless.
Anyway, this may be useful: http://www.blitzbasic.com/codearcs/codearcs.php?code=515
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