Shadows don't render on materials with rendering mode set to "fade" or "transparent"

I'm not sure how to approach this problem.

If I set the render mode of a transparent texture to "fade", it no longer receives shadows, but the material looks very nice, with smooth, clean edges.






If I set it to "cutout", it will receive shadows, but the edges are sharp and ugly.




How do I go about getting both clean edges and shadows?

Thanks

 

ugh, wishing i new the answer to this too.

 

also interested in this

 

I think only cutout material generate shadows. I wish a fade material could at last receive shadows.