@Demon hunter,,,,from the pic its looks like you have got the concept onto the figure OK
@Scott and Tim....Scott,totally agree with the vertical blend but if you look further back at the primed blade it has a definite line across the centre showing it thicker in the middle.This to me shows the bottom bit angles down(earth) and the top angles up(sky).Surley the vertical blend like you mention would only be on a complete surface without a change of angle.Ive just been reading some Vallejo books and in it he says he paints things as we believe they should look and not nesscesseraly(sp?) how they do look.I think its usually best to apply this to mini painting as well.
I like the idea of changing the tones to simulate the ambient lighting.