Someone suggested I post this since I found a way around making an actual portable lantern. Since I'm a newbie and coding is beyond me, I did this all through the GUI interface.
First off, I made the Lamp a container. I made it a Limited Container but you don't have to. Add in for "Opening" text as "You turn the lamp on" and for "Closing" type "You turn the lamp off." Now, I made the excuse the lamp has a sliding panel that you can open and close. So when it is open, the light source inside emits the light and when it is closed, the light source can't be seen.
http://i.imgur.com/hCCtgEL.pngNow, I placed the light source inside the container. In my case, I call it a "Glow Stone" which is a magical stone that emits light. Make sure you have "This Object Is A Light Source" checked. So, create whatever you want to call the light source and make the Lantern the parent. Make sure the "Glow Stone", your light source, cannot be taken out of the lantern (unless you want it to but it just complicates things imho).
So, now you have your Lamp except we want to be able to "Turn On" and "Turn Off". So go to the Verbs in the Lamp object and put in the following in the screenshots I made.
http://i.imgur.com/DEOUSTV.pnghttp://i.imgur.com/LQVY3Tc.pngAnd there you have a portable lamp that works. Make sure to set the rooms you want as dark to "Dark".
I tested it a few times and this works perfectly. For example, if the lamp is not on, the room will be dark. If the lamp is on and you drop it in the room, the room will still be lit (I heard people saying they had problems with this). If you drop the lamp in another room and return to the dark room, it will be dark again. So, this works perfectly from my tests.
Hope this helps anyone who had any issues with portable lamps.
Again, the only catch is that you will need to make the light source in the container. But I made a decent enough excuse why it works that way.
Also, I know nothing about coding so this is all GUI example which may be good for dumb dumbs like myself and maybe not so good for those more experienced with the coding.