http://bugs.winehq.org/show_bug.cgi?id=7644
--- Comment #17 from Stefan Dösinger stefandoesinger@gmx.at 2007-09-16 15:29:07 --- The fading away is intended in dxlevel 60. It happens in dxlevel 70 too, but at a much larger distance.
The broken flashlight is a known hl2 bug on windows too, in dxlevel 60. r_dynamic 1 fixes some of it.
The overbright objects are a GL limitation, and we need the GL_NV_register_combiners extension to overcome it, or GL_ARB_fragment_program. Does your card support any of them?
Regarding the two hl2 bugs, the question is why the game doesn't start in dxlevel 70 instead of 60.