no , it is just adding dlight for flamethrower users like it was in RTCW, however ET vertex dlights needed some hax to make nice lighting , currently it uses shadow for that (:nag:)
to change flames dlight just look somewhere in source for trap_r_addlighttoscene
i guess that this in cg_flamethrower.c will be what you are looking for
if (fHead->ignitionOnly) {
if (lightSize > 80) lightSize = 80;
//% trap_R_AddLightToScene( lightOrg, 90 + lightSize, 0, 0, alpha, 0 + isClientFlame * (fHead->ownerCent == cg.snap->ps.clientNum) );
trap_R_AddLightToScene( lightOrg, 80, alpha, 0.2, 0.21, 0.5, 0, 0 );
} else if (isClientFlame || (fHead->ownerCent == cg.snap->ps.clientNum)) {
//% trap_R_AddLightToScene( lightOrg, 90 + lightSize, 1.000000*alpha, 0.603922*alpha, 0.207843*alpha, 0 );
trap_R_AddLightToScene( lightOrg, 320, alpha, 1.000000, 0.603922, 0.207843, 0, 0 );
}