I already knew how to do that, there is a couple very similar tutorials here at chaosproject. However, what I am looking for is having multiple sources of light, like in the video. You can't do that with a picture, because all the pictures would cover each other up.
EDIT: So I ended up combining the event system at hbgames with Blizzard's Light following the player system. Instead of having the lights change the screen tone color they change the opacity of the circle of light image. And, of course, after I spend hours implementing it into my game and designing an entire dungeon based off it, I find a script that is exactly what I originally wanted.
I've decided I'm not going to use it, but here it is if anyone wants it.
http://www.hbgames.org/forums/viewtopic.php?f=11&t=63866 It heavily lags, though.