You're gonna want 2 events:
1. A Flame-- there's an RTP Character called "!Flame" (And then the one over on the right), use that for your fire.
[Note, !Other2 has another good flame in there]
It's Event page:
<>No Events
[Action button]
Movement Route: Custom.
[Make this a Jibber of Opacity [between 255 and about 190] interwoven with Wait (around 3 frames)]
Movement speed: Fastest
Frequency: Highest
[x]Direction Fix
[x]Stepping Animation
2. This thing:
Put that Image in your Characters Folder as "!$[Whatever you name it]" (The !$ is important, don't leave that off or it'll look very wrong)
[Credit goes to Busted Ed, not me.]
Then repeat the same Event page concept, but in the Movement Route, put as the FIRST command: Blending Mode: Additive.
Now, place your flame(1) somewhere on your map.
And on the tile EXACTLY below it, put the light effect (2).
Boom, you got a nice looking flickering fire.
Now add in a Tint Screen effect so it stands out.
Use a red/orange screen tint for your purposes.
Then if you want to fill the room with smoke for the cutscene, you can use pictures.
[You'll want to grab the Preload Manager Plugin-- which can be found on the plugin releases page]
Open Photoshop (Or Gimp, or something of the sort. BUT
NOT Paint.), and create a canvas/new image with a TRANSPARENT background.
Have the size be 816 x 624.
Now create a smoke effect in your picture.
Create a several frames so it animates right. Try to make it loop.
Now create a parallel process on the map that cycles the picture frames with wait 1 commands.
[show picture, 0,0, Blend Mode Normal. Opacity: Whatever]
During your main event, you can then have it control a variable if you want to darken your smoke effect.
Just add event pages to the parallel and increase the Opacity setting on those pages.
And have them be set to use a Variable as their condition.