Since this is Highly Technical:
The astronauts aboard the space shuttle, like most objects in orbit, are indeed in freefall, and thus microgravity;
"But since they're all falling at the same rate, objects inside of the Station appear to float in a state we call zero gravity (0g), or more accurately microgravity (1x10-6 g.)"
http://www.nasa.gov/centers/glenn/research/microgex.html
There is still gravity, and they are in free fall. However, the gravitational forces affecting the flame's motion (and the motion of it's exhaust gasses) in relation to the candle are all minimal, the only 2 massive bodies near the shuttle are earth and the sun, and both's effects are eliminated in this frame of reference by the process of orbit because the candle and flame are free falling in the exact same way. Simply put, free fall is just another name for microgravity.
Of course this IS highly techincal, maybe you know something NASA doesn't? hehe I kid, clearing up that there IS gravity in space is important, thanks, but assuming no gravity wouldn't really change anything in this case.