Corrected entry: At the beginning of the movie, when Bond is fighting with Moon on the hovercraft, Moon shoots at Bond with the flamethrower. If you use slowmotion just as Moon is beginning to fire the flamethrower, there are a few frames where you can see that it is shooting water at Bond, indicating that the fire was "drawn in."
rstill
17th Sep 2004
Correction: That is a real flamethrower supplied by Any Effects Ltd. It uses 'Sterno', camping lighter fuel, mixed with hydraulic fluid. This produces a very low temperature flame which is also very 'dirty' - meaning it can be seen on camera (and in real life.) What you see when freezing is the unburned sterno just before it hits the spark plug.