Yes, it is very much possible. But you need lightmaps to do it, as normal lights won’t be able to make all the little soft shadows that makes such a scene work. Either use the build in Beast lightmapping system, or generate lightmaps in your 3d software of choice. I don’t remember if Beast is Pro only, though.
Yes, it would surely require GI, or at the very least some basic AO. And it is very much supported in the free version, as long as you don’t use Beast (Or as stated previously, I don’t even know if Beast is Pro only). Before Beast was implemented, it was still possible to work with lightmaps, you just had to do it all yourself. There are some legacy lightmapped shaders you can use for this. But you have to do the lightmaps in some external 3D software. The details I’m sure you can look up somewhere else… GI is not done realtime, unless you can settle for some SSAO, which never looks that good on itself (lots of artifacts, and very static look)