All of it is done with a .xml material library that Snarly posted and I modified.  He has posted it on the pose2lux forum along with the explanations of the use parameters and how they effect the material.  Dead useful when trying to modify it.

For the lights.  Candle is it, flame is set as an emitter, will have to open it up later and check what my lux settings were.  Right now I have another scene baking and really want to let it finish otherwise I will never get back to it.  LOL