The logcat shows warnings for non square textures -
06-22 14:09:44.348: I/jPCT-AE(4438): [ 1403426384351 ] - WARNING: Texture's size is 64/128, but textures should be square for OpenGL ES2.0! This may result in a black texture!

But so far it has not occurred in any of the devices which I have tested  !
But I don't want it to crop up in some random device out there !
Is there  any possibility or it is okay to use it like this ?

The "setshadingmode " is used for setting the shading mode (flat or gourad shading) .It has nothing to do with shadow casting.
If your scene is extremely small (like confined to a room only) then maybe you should use the multitexturing approach with different lightmpas per same model  and switch them according to the lighting you want(I know that it is a quick dirty solution ,but there is nothing bad in giving it a try!).This will actually make sure that your scenes are visually apealing(FOR STATIC SCENES ONLY!) !
Just make sure that your lightmaps are reasonably sized(or it will cause memory problems)!
The "virtualizer" will come handy to save you from memory problems.

  I am happy you solved it! 

Maybe you should try recreating the scene in jbrush and reloading the scene..... but this time without the floor model and the texture i.e try only that table thing ! Check if that loads fine on your device!

Yes I got it! 
The mcgrass.png  texture you are using is of dimension 420*420 and it is not supported . Try to convert it to either 512x512 or 256x256 . You have to use power of two texture image i.e 2,4,8,32,64,128,256.512,1024.....so on.

If Possible, may you please attach your zip here through attachment options ! It is getting corrupted when I download from the link you provided!(Strange!)

Oh ! sorry!  yes you did that!
Have you tried to recreate and reload the scene?
....Once I reach home ,I'll make an apk out of your source to see what is wrong !

Hello! Welcome!
Maybe you forgot to include the texture which is applied to the floor model!?
Make sure to include all the assets that you can visually see in your jbrush editor.

  One word...Awesome!   
It is so nicely done ! (and it is in alpha stage!)
But one question ....Are these 3d models having high polys?

  I see. Yes, as stated in earlier post , It only works for static scenes with no changes in lighting . That is the drawback of the methods 2 and 3 which  I suggested . JPCT AE comes with point light ,ambient light support out of the box . But for stuffs like shadows ,spotlights ,area light etc.. you would have to write shaders . I saw some users doing this in their work . If you are willing to learn writing shaders , then there are plenty of tutorials for opengl es 2.0 scattered on the web .
Writing shaders are hard if you are a complete beginner(and may be that applies to you!) and you may even find it difficult for testing and make it work on various devices ! So maybe you should stay away from it (Even I do not know that stuff and I stay away from that dimension ! )! 
I suggest you to experiment a little with the default stuffs .
For now ,I can suggest you to try scaling your room model and 3d objects larger and see if there is some difference .

   Yes, you can do that! Possible solutions are-->
1 .You can use your own lighting shaders.
2 . If Your scene is static and does not need dynamic lighting , you can use easy tricks so that you can fake the lighting effects by using lightmaps. This uses multi-texturing approach. Check this for reference - http://www.jpct.net/forum2/index.php/topic,3451.msg24809.html#msg24809 
3.  You can consider to bake your lightmap and colors to a single texture image. This is quite easy and my preferred way too . You can easily obtain these textures from blender .There are plenty of tutorials for the same.
for example-
This is the texture with lighting patterns and colors-

And this the .3ds model on which above texture is applied ,ready to load in jpct-ae -

Hi!

Can you make it available for my sony ericsson wt19i on playstore ...or send an apk to me ... i would like to test this on my phone!

  THanks for sharing this!!! 
I was looking for something like this for ae version ! Any future plans for ae version ?

Hello ramzes0071!
   You can easily get a glow effect by just using a transparent billboarded plane with the glow texture with additive blending .

This Topic shows it --> http://www.jpct.net/forum2/index.php/topic,2576.msg19041/topicseen.html#msg19041

Hope this helps!

  I really do not have any idea about the Vuforia stuff . But a look into the wiki page about integration of jpct with vuforia , I got this thing -
public void updateCamera() {
Matrix m = new Matrix();
m.setDump(modelViewMat);
        cam.setBack(m);
}

  I am not sure , but maybe you can experiment tweaking the values of the matrix "m" before applying it to the camera .
public void updateCamera() {
Matrix m = new Matrix();
        m.setDump(modelViewMat);
        //your adjustments for " m" here
        cam.setBack(m);
}

(Sorry if I am posting something wrong ! And please correct me if anybody feels so ! )