Same issue I'm having if you change the 'radius' under 'extra' tab in the reference menu, but it also increases its intensity it seems, because your increasing the light radius.
I've also played with the 'no fade' option and 'casts shadows' option didnt make a difference.
Found the problem. Straight from the wiki
http://www.creationkit.com/Bethesda_Tutorial_Lights_and_FX
Shadow-Casting Omni
This type of light casts a sphere of light, just like a regular omni, but casts shadows. Shadow-casting lights can be identified by a purple axis, seen in Fig 8.1b.. Shadows generate additional polygons and only four can be visible at any given time, so be careful of how many of these you use. Too many shadow-casting lights will quickly cause performance problems and visual bugs.