You will need people to put around your scene. Try this Hobbylinc it has some people meant to sit around a campfire. That store has 7 pages of people so if you don't like the hobos there are probably other people you will like there too. They also have other scenery stuff like bushes and small tools, etc.
First drill a hole in your base material big enough to squeeze the bulbs up through. You want the bulbs to be bunched together tightly. The rounded top on an LED acts as a focusing lense. Sand down the rounded top on each bulb and you will get more light spread without damaging the LED.
To make the ashes of the fire, we like to use coffee grounds, you can paint some of the grounds gray for further from the fire, paint some red for close inside the fire.
The LED kit comes with iridescent cellophane that you crumple up and tuck into the fire to make the light diffuse and shine around more.
Then some sticks from outdoors. I paint the sticks red on one side and black on the edges part way to the top side of the stick. I glue the sticks I lay over the LED bulbs so that the red side faces down and the black side faces up. Use just a drop of a white glue like Aileene's Tacky glue.
You can add the cellophane and sticks while the LEDs are lit to see how the light is getting spread out.