I think I finally mastered my PSX-styled model workflow. This is 100% different than what I used to do, and isn’t as accurate, but is more flexible for creating content for animations.
 
As you can tell, I swapped out Blender’s dynamic lighting for baked vertex shading, this is more accurate. The only thing really missing is affine texture mapping, which I have no idea how to do with Blender.
 
Fog was added in order to make the lack of detail harder to notice.
 
As for the model, I’ve mapped the eyes to an alpha channel so they can look around. As I also made the mouth have details inside so they can open and such.
 
Her shadow was done with the Shrinkwrap modifier, as it’s just her body mesh with a black material which is then clamped onto the ground from it’s height.
 
Edit: Yes I know the background doesn’t loop that nicely. Did the best I could.