I just managed to break my virtual machine so it's the same as you describe yours, incredibly laggy and lighting not working. I achieved this feat by booting the VM without 3D acceleration enabled.
Unfortunately, rebooting with 3D acceleration switched on didn't fix Shiva. It took me a little while to figure out what was wrong - in the IDE, in the Scene Viewer window, select Render Options from the Display menu. The setting for 3D Device Driver had switched to "Software, Low Quality" and stayed there even after booting with 3D acceleration enabled. I set it to Hardware, High Quality and everything is back to normal.