The lights coming out of the walls should mainly be a texture light, such as white001, then if you want, you can add a spotlight inside the hole. You could also add a regular light, set to very low brightness 10-20, and put it just outside the hole. Might take a bit of experimentation the first time, but once you know how to do it, its real quick to setup.
wow didnt know it was so simple, i thought it was the entity in effects that looks like a bright light
Most things in Hammer can be done in 2 ways: either very simple, or very complex. Valve always chooses the complex way. I always choose the simple way.