I found the problem. I was using regular bulbs, and the unfocused light was confusing the light sensor, it wasn't sure if it was daylight or nighttime. I think it kept going into day mode (auto) and the lights would not go on when the motion sensor detected something.
The halogens have focused light, they shield the light sensor so it knows it is night time. I did not know about this!
Anyways the motion sensor light is working, and the back of the building is more secure.