That's amazing. So many awesome things you could do with this. Does it allow actual animated backgrounds, or simply just scrolling of the background? Example:
would this be able to become a background.
I only implemented scrolling so far since it's the easiest to do lol
For animating specific parts of the background, you'll have to think about how you want to do it.
1. You can create an entire spritesheet for the torches and have it loop during battle. Most of the image will be transparent so this shouldn't be too bad for filesize.
However, it's one image, so that has its own limitations.
2. You can create separate torch sprites, and add them to the battle scene. Each sprite can have different animation settings, and you can have different torch sprites. You could specify the zoom level if you want the ones further in the back to look smaller.
This would require more work on your part since there isn't really a way to automatically tell the engine where to put the torches, so you'll have to do the set up manually. I haven't thought of how to improve the "scene creation" process, but it would be interesting if there was a way to build it with the aid of 3rd party tools.