Mantle of Flame, need to help with a ruling

So some friends in a 3.5 game have a character running a Incarnate using Mantle of Flame. I haven't touched Incarnum in a while, even if it is my favorite splat book.

One of the lines in Mantle of Flame is "The Mantle of Flame grants shadowy illumination in your space, but provides no other lightning"

Looking into shadowy illumination in the d20srd...

http://www.d20srd.org/srd/exploration.htm

"In an area of shadowy illumination, a character can see dimly. Creatures within this area have concealment relative to that character. A creature in an area of shadowy illumination can make a Hide check to conceal itself."

Bolded by me.

So their question to me is that... Does Mantle of Flame really allow you to make hide checks? Sure they can find your square (the shadowy illuminated square) but they wouldn't be able to see you since you are hiding. Pretty much the same deal as listen check versus invisibility and such.

I want to say... Yes, that is what it says even if that isn't what they meant.

Is there any reason, by RAW (this is what they play by, I tend to go by a mixture of RAW/Rule of Cool/Common Sense) that it wouldn't allow you to make hide checks?

The Mantle grants shadowy illumination, but if ambient light is already bright enough to see clearly then that doesn't actually do anything - being illuminated by both dim and bright light means you're brightly illuminated.