The reason I asked you to upload them to imageshack is so we could see them. Do you have a link?
Anyway, do you want animated flames or just static flames? Animating flames will be alot harder but can be accomplished.
Anyway, to animate something simple, make the frames that you want to show in animation (ie in a banner, text that moves or changes) and make all the frames on differen layers. Then click the "edit in imageready" button. Make sure you have the animation and the layers box open (Window > Animation and Window > Layers ). Make the first frame layer visible and then click the new frame button in the animation box. (second from the right) Next make the second frame layer visible. Carry on until you have the whole image animated. To adjust the time for which you want the frame to be shown, click the little arrow in the bottom right of the frame in the frame box. Have a play around and you should get the hang of it in no time
Sorry, nitrexoxide.... should have gotten back to you sooner. I don't know the difference between static & animated flames. I don't have a link yet because my website is not yet on the web. Am going to try working around with the details you listed (but do I do this in Photoshop or ????)
You need to place this small screen capture in front of the one other that you uploaded. Then apply IE's WAVE filter and script it with a step button. Capture each sequence, perhaps 12 images in all, save them as .gif format and then, compile them as an animation with another program such as Microsoft .Gif Animator
i would suggest to:
use a camera to take some real snaps of some flames
layer the flame images on top of your original image (resize it so and rotate it so that the perspective looks real)
then, clip out the flame and remove the background fr the flame image, transform / dsitort it and duplicate it with multiple layers until it looks real..
try using multiply / screen effect.. and some eraser /airbrush should do..