I'm with Paul here, Lua is one of the best scripting engines and its well known in the game community. Thus its more likely that you can pickup modders and scripters for it. Pascal Script for Delphi (from RemObjects) is also quite good. DWSII is just too dated to be used anymore.

Up sides of Lua:
Cross platform
Well known
Excellent documentation and support
Its the only script engine in the TIOBE top 20 languages

Down sides:
Right now you have to use a DLL version, though I'm porting to FPC

Anyways, I have a small "Game Engine" sample on my website that uses Lua in a Lazarus project along with SDL. I have the updated Lua headers in the project to support Lua 5.1 (latest "stable" release). I'm also working on a new version called pLua that will have better support and many bug fixes for using Lua in Pascal (more on this soon). Of course, the end goal of pLua is to completely port Lua to pascal .

Anyways, enough rambling, download: http://eonclash.com/ViewProduct.php?ProductID=23