Take your basic candle-flame ellipsoid shape and add the following attributes:
Fog Length: 0.10 Texture: Ghost Fog length at T: 400 T: 0.8 Texture: FogTop Fog length at T: 200 T: 0.5 Noise Magnitude: 0
Place the axis so that the origin is in the tip of the flame and the bottom of the bounding box is 2/3 towards the bottom of the flame. With the Z axis pointing up.
Texture: Fireball Color1: 255,255,100 Color2: 200,030,000 Noise: 0 Reflect&Filter 1&2: 0
Place the axis so that the origin is in the bottom of the flame and the end of the Y axis is in the tip.
BTW: my object was about 60 units wide, and 150 units tall.
You can now add a child axis in the middle of your flame and make it a lightsource.
To animate this, make sure the Y axis points upward (do this before adding textures, as their placement is relative to the axis), and move the the object up along a wavy path with conform to path. Then move the path back dovn a mirror copy of itself, so that the flame stays in the same position. Makes a really nice and realistic candle-flame.
If you have version 3.0 or higher, here's a free candle tip: