minetest_game/mods/animatedtorches

This simple mod uses a bit of code cobbled together from the default 
torches and from the recently-introduced animated lava to create proper, 
animated torches.  All existing torches (wall, ceiling, floor) will be 
displayed with the new animated texture, but no nodes are being 
replaced.  Inventory/wield image uses the stock torch image already 
supplied with Minetest.

Textures by me (derived from a rendered torch and an actual burning 
flame).

This mod requires a build or git pull of Minetest dated June 17, 2012 or 
later.

License: GPL for the code, WTFPL for the textures.