The Battle at the Flame was a shootout between the Others, who were stationed at the Flame, and a group of the survivors, including Locke, Kate, and Sayid. Mikhail Bakunin and Beatrice Klugh were the Others who were stationed at the Flame.
The survivors had previously seen the Flame on a monitor at the Pearl station. Mikhail hastily disabled the video feed once he saw that people were watching him. ("The Cost of Living") When Locke was burying Eko, he saw the Biblical verse "Lift up your eyes and look north." This compass bearing is what led Kate, Sayid, and Locke to the Flame communications station. ("I Do") ("The Hunting Party")
Kate and Sayid defeat Mikhail
Sayid approached the Flame unarmed with his hands raised, indicating he had no weapon. He was shot in the shoulder by Mikhail, and a small firefight between Mikhail and the survivors ensued in which no one was injured. The survivors took Mikhail captive. Mikhail claimed that he was the last living member of the DHARMA Initiative. Inside of the Flame, Mikhail brought the survivors iced tea, and talked to the survivors about the DHARMA Initiative, the Hostiles, and the Purge. Sayid was convinced that Mikhail is not DHARMA, but he is one of them. Mikhail then attacks the survivors, but is overcome by Sayid and Kate. As the survivors discuss what to do next, Sayid reveals a hidden underground entryway that was concealed by a carpet.
Bea is taken hostage by Sayid and Kate
Kate and Sayid enter the basement, while Locke stays upstairs with Mikhail. In the basement, Kate is attacked by Bea Klugh. Sayid holds a gun at her, and she surrenders. Locke succeeds at beating the computer in chess, but is held at knife point by Mikhail. Mikhail brings Locke outside. Sayid, Kate, and Bea confront them outside. Bea communicates with Mikhail in Russian, telling him to shoot her. Mikhail shoots Bea, and attempts to shoot himself but is stopped by Locke. The survivors hold Mikhail at gunpoint. ("Enter 77")
The survivors and Mikhail meet outside the Flame, and prepare to leave. Sayid has found blueprints for the Barracks, which is the home of the Others. Mikhail states that he would kill them all if he gets the chance, and Danielle suggests that they kill Mikhail. Sayid disagrees, and the keep him alive. Locke tells Mikhail that he knows about the big secret behind the Flame computer. The Flame station explodes into a fireball shortly after Locke enters 77. ("Enter 77")