There are several ways to have flickering LED's.
Flickering LED's or standard LED's controlled by a flicker unit.
I've had a look around for very small 1.3mm flickering LED's but can only find them in 3mm on a well know auction site (not sure if I'm allowed to use the name).
I have found two very small flicker controls on the same site, one for a single LED and the other controls four but I should think a couple of extra LED's could be added to each unit.
LED range in size from about 1.3mm upwards and most come with a resistor.
I have never posted a link before so I hope these work.
Murton Scale Miniatures, controll unit: Link
Murton Scale Miniatures, 5mm LED: Link
Very small LED: Link
There are plenty of LED lighting solutions on that site.
I have also been playing around with cannon fire sound effects on the computer,and there are a few sound samples on the net which could be loaded into a small cheap mp3 player. Cornwall Model Boats sell an SD card 'Galleon With Cannon sound card' for £9.98: Link
I think the smoke might be beyond me.
Bootes