This bug affects version 0.8.0. Burnable blocks that are placed within lava range are supposed to burn. But when a block, such as wool, is placed within the 4 block range distance, it will not catch on fire. It can be placed within two blocks and still not catch fire, no matter how long you wait.
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Really? My map has a huge layer of wool two blocks above a layer of lava and it doesn't catch fire at all. Is it slower to ignite?
The burning range was increased in 0.8.0, because before i updated to that version, i built a house, but when i did the update, all my whole house were burned, becase there was lava, like 5 or 6 blocks of distance from the wood.