Sudden change in light quality with added light source

I’m playing around trying to familiarize myself with all the features available in Unity. I’ve compiled a test project at:

http://enigmadream.com/UnityTest/TableMountain.html

If you walk into the building and go up the stairs you’ll see a spherical light rolling on the ground. If you click the mouse, another will pop into the room. In my experience, often times when there is more than one on these light sources in the room, the quality of the lighting changes significantly. Is it automatically switching between pixel lighting and vertex lighting, or an anybody explain what’s going on here? And why?

Is Render Mode set to Auto? If so, then from the Light page: “The rendering method is determined at runtime depending on the brightness of nearby lights and current Quality Settings.”

The Optimizing Graphics Performance page also has a lot of info about lights.