@Pink Horror: Check out my shader above, when I apply bump map it DOES look very well.
When I remove the bump map I don't see the light, I tried to move the terrain upwards, now I get to see the light, I also get to see the light when I set large amount of "point light radius".
I guess the light get positioned incorrectly when I don't use bump map.
In Vertex Shader, I'm transforming the normal as the following:
OUT.Normal = mul(IN.Normal, (float3x3)worldInverseTransposeMatrix);
Why are you computing this normal?