I was wondering if you could change the shadow color from the sun? I'm making this for a T-shirt that will be black so I'd like to change the shadow to grey. Thanks! Now it got foggy...what should I do?
While user2859's answer is correct for changing the color of shadows, the shadows in your image are actually not those kind of shadows (or at least not to BI).
To adjust the color of those shaded parts of the mesh, try tweaking the ambient world color in Properties > World: