Something I've wanted to play with for a while, pretty simple but makes use of blender cycles amazing lighting
I bake onto these little boxes lighting - but they only receive indirect lighting (they also do not interfere with light rays in anyway e.g. reflecting/blocking light themselves).
Then I use this as a base colour for my character, blending between them depending on the players position on a grid of colours.
This image has AO on the character too. I will then use point/spot lights for direct lights.