Local lights emit light in all directions, as opposed to spot lights that can only emit into a hemisphere at maximum. Lights of this type should illuminate the walls, if no illumination is apparent it may be due to the normals being incorrectly aligned on the walls (if so, flip them) or something to do with the walls' material.
Regarding the radius settings, effectively the light will illuminate anything within the Inner Radius 100%, and anything outside the Outer Radius 0%. So something that falls half way between the inner and outer radii will be illuminated 50%. Depending on the scale of your model you may need to adjust these settings to get the result you're looking for.
Glow spheres are a bit trickier, especially if you are rendering with ART which always casts 100% shadows*. A sphere around the flame will effectively block any light inside it from illuminating anything using ART, if you are using Scanline you can set the spheres to not cast shadows. An alternate method would be to place circular objects between the flames and camera that simulate the glow from each candle, so long as the camera is static it should look ok. If the camera moves you will need to move the circles too.
* May have been resolved in an update, I'm a bit out of touch with recent developments.