I think its not possible to create lights using "drop"; I've tried all sorts of params and no success. I ended up using a small light object that I attach to the missile with a script; it works just fine. According to BIS, a script loop with anything smaller or equal to 0.0001 secs delay will be executed once for frame, so you should be able to achive a smooth animation.
You might try to use such a light object with the "drop" command to bind it to the missile; haven't tried that one. Its possible to bind objects from an addon to a vehicle using "drop", thats for sure, but maybe it only runs the model simulation but not the illumination, I dunno.