In oblivion u could drop a tourch while in ur hand and it would stay alight, I don't know if I'm just being daft or it's no longer an option but lighting up those dark corners of ur house would be awesome

If anyone knows of a way or alternative let me know =)

Fill your house with Followers and use Magelight on them when you wish to see everything.

They should stay alight if you drop them, yeah. I dropped a few torches in the middle of Riverwood and they actually give quite a nice soft lighting effect at night time. Or at least they did, before I FUS ROH DAH'd them to the other side of the city.