Haymaker is right about playing around with the "constant" parameter. But there are two others you can equally play around with to get the effect you're looking for.
-For one though, you complain about it being bright when you walk up close to it? -Well, this is what real light does. If you don’t add a model in the room to show where the light is coming from then yes, it will look weird when you walk up to it. What you can do, is place it up higher so that the player can't walk "through" it. Although, I'm not sure what your exact scenario here is, I imagine it still needs to look realistic. All lights have sources; choose yours by adding a prop_static and searching for a 'world model'.
-About the Linear, Constant, and Quadratic keyvalues under your regular 'light' entity. Check out
here for a good VDC explanation on what they do and how they work. FYI, this is a feature available in all Source games, but doesn't get used very often. I'm guilty of it too, but if you want an area to have perfect lighting, then this is the way to do it.
-Specifically, I would try giving the 'Constant' value a 1 and the other two (Quadratic & Linear) a value of 0. The Constant value will let the brightness of your light extend for infinity and not 'fall-off' (the shadows in corners you're seeing will go away). Read-up on that link to find out what you can do with the other keyvalues to fix your problem.