2D Diffuse Lighting Not Working as Advertised

So I have two problems with the 2d diffuse lighting I am using right now.

  1. The player body sprite is lit in the scene but when I hit play it only works a few seconds then goes 100% black.
  2. The grd (ground) sprite has the exact same material but fails to be lit no matter what I do.

I have tried everything, I have moved the lights on the z axis, Tried different lights, messed with the settings. I am at a loss. If anyone can help that would be fantastic. I have included my screenshots below.

Note: No scripts are referencing these lights.

More Photos: Troubleshooting | Flickr


Found my solution here:

Z scale can’t be 0. That created both of my issues as when I changed direction for my sprite the z got set to 0.