i hear that word a lot when people talk about guitar constructional quality,that theres a flame on the neck/body wood,its supposed to mean something good,but i really dont know,
how does it look like? and what does it indicate?and why does it mean good quality of wood???
It's what's known as a 'figure' in the wood, generally maple. The three that I can think of right now are flamed maple, quilted maple and spalted maple.

Go to this page: http://www.warmoth.com/guitar/options/options_bodywoods.cfm

and go down to the maple section, that has just about all of them I think.
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It's the sort of effect the wood has:
That'll explain some stuff about it.
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