Now, here's the question :)
If I leave 'Cast Shadows" on for the cone/brach object, strangely enough I get a cone shadow on the trunk (cylinder). However, the effect I'm looking for is to have the actual branches reflect their own shadows. CAN THIS BE DONE?!?
You have to use Raytracing Shadows - they can "see" the opacity map!
Click on the Spotlight, look for the Shadows settings and turn Ray
Tracing Shadows ON (I think there are two radio buttons - Shadow Maps
and Ray Tracing).
This kind of shadows can also "see" the filter color of your material
and uses less memory.
The drawback is that it is a bit slower, and cannot be used with volume
lights.