That looks awesome Doug, if mine ends up looking half as good as yours, I'll be over the moon! I bought a pack of 8 flickering LED tealights for £2 on eBay that I'm going to dismantle and use for exactly the same purpose!
Just make sure you include a bellows blower for the fire, as well as buckets for water, cone anvils and other various tools a smith would have.
My father, when he was younger, did a great deal of blacksmithing and I grew up watching him create truly amazing things out of molten and heated metal.
The forge is moving on, just waiting for a few more accessories that I have purchased to arrive (buckets, more tools and a barrel) to finish it, but this is it so far (Roofless):
Have also been cracking on with finishing the actual blacksmiths shop and decided to construct a little diorama board to display it on (just paint at the mo, still needs flock etc). This gave me an opportunity to try out my airbrush and hone my skills before I tackle my layout.