ok... i tried both of those things and here is what i get:

Turning off infinite light makes it so the visible light is only where the actual light object is vs. wherever it projects.

and i did a test and the light does in fact go right through anything that is infront of it.

after more playing i think i finally decided what is wrong... im using the sun and there is no main sun in space. so i took out the sun and put the light back to the way i had it at the beggining. Now the light works perfectly but the spaceships are quite dark so i just need to add more droids and some globe lights.