I might weigh in on this since fire is a rather popular request. Now I'm not saying the following is the best way to achieve what you want. And no I've not tested it but I'm 99% sure it can be done with the right code. So here goes.
A quick google search found me this which should give you an idea for a base texture (note your texture should tessellate horizontally).
Now we want to make it live.
So say we add it 3 times over as 3 passes. The top two layers we want to make transparent but we are not going to mess with adding alpha to the images they are fine as they are. Instead of using "scene_blend alpha_blend" try out "scene_blend add" this will make black and anything dark transparent keeping only the light of the flames. I also suggest setting "emissive 1 1 1" This basically means the fire emits its own light and does not require an external light source.
Let's add some movement; fire rises and falls so our fire should do the same I recommend the "wave_xform" function specifically "wave_xform scale_y sine" what this will do stretch the texture up and down. The actual code for it would be something like
"wave_xform scale_y sine 1 0.2 0 2"
Where
1 is the minimum scale
0.2 is the transition speed
0 is starting position
2 is the maximum scale
Each layer needs to be different for full effect.
To add some left and right movement use the same format but instead of "scale_y" use "scroll_x" which will have you flames that are moving up and down also shifting left and right.
Hope this helps
Raz