This posting is older than 6 months and can contain outdated information.
Yes, candles are not the technically best solution, but easily 
available everywhere ;-)
The distance of the IR LEDs is overestimated. Even when building a 
sensor bar replacement for the WiiŽ, the exact spacing will not 
matter at all, as, depending on your distance from the sensor bar, 
the camera will "see" more or less close together anyway. My best 
guess why the sensor bar was designed lengthy rather than a box is 
that this form factor is a better fit to TV sets and is probably more 
stable due to its greater weight.
For Remote Buddy, one IR LED below or above the center of your screen 
would be totally sufficient. I'd place up to four there, though, to 
ensure you have a brighter source. The IR sensor in the Wiimote is - 
as far as I can see - not able to detect more than four spots anyway.
Best regards, 
Felix