Welcome Epideme! <img src="/ubbthreads/images/graemlins/smile.gif" alt="" />

That's not a bad idea. Do you think you should be able to move the cursor like a torch-light? Perhaps it should just be a stationary globe based on your sight and (currently non-existant) Search skill? Or the further you move the mouse from your character, the smaller the globe is?

I don't think coding would be too difficult (famous last words). Any item within the globe and within line-of-sight would glow. Most of the functionality exists already. I think that any items you've already run your mouse over or that are dropped by a fallen enemy should glow when you press the ALT key, regardless of where they are.