Light reflection and refraction in Blender Internal? I have noticed when trying to make a mirror in Blender that it does not reflect light onto other objects properly. 

Also, it seems that setting the IOR (Index of Refraction) for transparent objects does not effect light either.

How do I get reflection or refraction effects in Blender?
You need to use a ray-tracing render engine. Blender's internal render system has a ray-tracer, but it doesn't have the ability to reflect or refract light beams. You could possibly use Cycles for this.