Without getting into a semantics war, I am going to reply one more time to you Hootenanny and that's it; after all, I think by now, the OP most probably got an answer to his/her question.
Hootenanny:
The main thing that I was trying to indicate (and separate) is that when the OP asked if the heat from the candle turned into kinetic energy, which then caused the "bubble" of hot air to move up...clearly, he/she had in mind that kind of kinetic energy that is typically related to translation motion of an entire body (e.g., a ball thrown, a bullet shot, etc...think kinetic energy in ridig bodies) and NOT the kinetic energy of the individual particles of the gas...in other words, kinetic energy as defined http://en.wikipedia.org/wiki/Kinetic_energy" .
There is no such quantity known as "internal kinetic energy". There is a quantity known as internal energy, which is composed of kinetic energy and potential energy. The kinetic energy accounts of the translational, rotational and vibrational motion of the molecules. Kinetic energy is always associated with motion, so I don't understand what you are referring to.
No, the kinetic energy included into the internal energy actually excludes the kinetic energy due to motion of the entire system. Please refer to http://en.wikipedia.org/wiki/Internal_energy" definition and read carefully.
Answer me this: When the candle increases the temperature of the air, does the kinetic energy of the air increase?
Yes, the kinetic energy that is part of the internal energy, also known as THERMOdynamic energy, increases...but this has nothing to do with the kinetic energy that entire "bubble" of hot air could acquire as it moves up due to external forces (surrounding denser air pushing it up).
Second question: If the candle isn't causing the air to move, would it still move upwards if we removed the candle?
The candle is not the SOLE reason why the "bubble" of hot air moves up...the candle makes the "bubble" of hot air lower its density, but it is the fact that such "bubble" of hot air is surrounding by denser air under gravity that actually pushes the "bubble" of hot air up...this is nothing but Archimedes principle all over again.
And that's when I brought up the "bubble" of helium example...if you release a balloon of helium, you don't need a candle since helium already has lower density than air and so, it gets pushed up.
And that's when I brought up the example of a "bubble" (don't be a purist and just bare with me) of air surrounded by nothing (in vacuum?)...if you heat it up, it is not going anywhere...
That's all.
Cheers.
gsal