I've played around with it and I think I have a solution. The following example shows how to set Box-Shadow so that it will only show a shadow for the inset top and bottom of an element.
Legend: insetOption leftPosition topPosition blurStrength spreadStrength color
Description
The key to accomplishing this is to set the blur value to <= the negative of the spread value (ex. inset 0px 5px -?px 5px #000; the blur value should be -5 and lower) and to also keep the blur value > 0 when subtracted from the primary positioning value (ex. using the example from above, the blur value should be -9 and up, thus giving us an optimal value for the the blur to be between -5 and -9).
Solution
.styleName {
/* for IE 8 and lower */
background-color:#888; filter: progid:DXImageTransform.Microsoft.dropShadow(color=#FFFFCC, offX=0, offY=0, positive=true);
/* for IE 9 */
box-shadow: inset 0px 2px -2px 2px rgba(255,255,204,0.7), inset 0px -2px -2px 2px rgba(255,255,204,0.7);
/* for webkit browsers */
-webkit-box-shadow: inset 0px 2px -2px 2px rgba(255,255,204,0.7), inset 0px -2px -2px 2px rgba(255,255,204,0.7);
/* for firefox 3.6+ */
-moz-box-shadow: inset 0px 2px -2px 2px rgba(255,255,204,0.7), inset 0px -2px -2px 2px rgba(255,255,204,0.7);
}