Personally I never made use of it. Despite the game being set in a fantasy realm with magic the notion of dipping a sword in a candle flame to create a flaming sword felt a bit...silly and OTT? I’m down with a weapon that is imbued with magical flame though, who wouldn’t be? Something just doesn’t sit right with me about a character with no magical abilities holding their axe over a candle and suddenly it is a flaming weapon.
Creating flaming arrows seems more feasible, provided we were carrying some pitch or something ignitious? As you said, basically something inventory based with which to create them.
Is dipping in DnD rules?