Well... the movies were wrong.
Let's look at this picture.
Allow me to enlighten you instead =)
Fire needs oxygen, and that's readily available in Earth's atmosphere. Out there in space we have meager(practically none) supply of oxygen, and so astronaut cannot start a fire in outer space. If there's an explosion out there in space, the fire would quickly die away rather than burning the whole thing into ashes.
But in a spacecraft hanging above us in the orbit, there is no gravity. So there is nothing to pull the air downwards--meaning there is no air circulation. It still burns the oxygen around it but there is no gravity to pull cool air downwards to enable any air circulation. The fire starts but it just stay there. It doesn't flicker as it does on Earth and if there is nothing to propel fresh air(in this case, oxygen) towards it, the fire would slowly die away.