Well, it LOOKS like incorrect specular caused by rendering without shadows, but if you have them on and have checked that the lights are casting shadows as well, then it may be some wonky configuration on the Specular channel.  It is generally not a good practice to use both the Specular and Alt_Specular channels at the same time imo.  I also wouldn't use the Translucence channels at all, that is kind of a strange concept for me - while skin can be translucent in the real world, it doesn't make sense to do this with a polygonal model which is essentially hollow.

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