I'm going to restate this...
The Fire Magic, which comes from the wand when Link has the Magic Book still uses the Wooden Sword Sprite instead of the sprite that I define when editing the Magic Book, and the Flame that spawns from the Fire Magic is still using the sprite defined as Fire Magic instead of the Flame Sprite.(This still happens in 796)
In reference to this old bug report thread: http://www.armageddongames.net/forums/showthread.php?goto=newpost&t=102148
NOTE TO DEVELOPERS: This happens in all quests, including those in the normal game (1st, 2nd, and 3rd).