Voxelmesh shadows

Hi,

I an currently working on a voxelengine based game. But the diffuse shadows are really ugly and SSAO isnt working fine too.
Does anyone know how to cast smooth realistic shadows on a voxelmesh ?

Picture helps to explain my problem

The normals need to be calculated properly to get smoother looking results. I believe you can average the normals to get the results you are looking for but someone else can chime in if I am wrong.

-Dane