Well, if you can bring Abe Lincoln, and other animatronic things to life, why not a candle? Add a little Disney magic to some LED's and a bit of creative molding for a candle body, and poof: You have a Dream Candle.
First introduced at the 2010 CES show by Luminara LLC (originally Dream Candles, LLC), they have exclusive rights to commercialize Disney's patented idea. They now have product available and information can be found at www.myluminara.com (this site redirects to a UK site, but if you go to www.facebook.com/pages/Dream-Candles-by-Luminara-LLC/415944677305 you can find US resellers.)
Don't use real candles on stage unless you can meet the requirements of NFPA Life Safety Code 101, Section 13.7.3. If you do plan to use real candles, then you should obtain a copy of NFPA 160 Standard for the Use of Flame Effects Before an Audience. This standard is referenced by the 2009 NFPA Life Safety Code 101, Section 13.7.3.(2). Failure to know the requirements of the law is not an excuse to break the law.
There are other pretty good LED candles out there, like Smart Candle (http://smartcandle.com/), and some are even less expensive than real candles, and they don't drip hot wax on your actors, melt your props, or ignite your costumes that you failed to treat with fire retardant. (Ref: 2009 NFPA Life Safety Code 101, Section 18.104.22.168 - Flame Retardant Requirements).