Here is an interesting project that allows you to have the look of a flickering candle without the issues of open flames. There is an Instructable for the project here and more details over at Gadget Gangster.
"The fakenflicker is a tiny, battery powered candle simulator. 3 colored LED’s authentically flicker and fade, just like a real candle, controlled by a PICaxe 08M. This project was designed by propellanttech. You can get the kit or bare pcb from Gadget Gangster and download a PDF version of this howto. If you get the kit, the PICaxe will come pre-programmed, but the board has a programming cable connector if you’d like to reprogram it."
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I have mane one like this a long time ago:
http://www.youtube.com/watch?v=JImGPBsvs3s
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