I made such a spray booth and did 5 custom paint jobs using HOK polyurethanes in a 2 yr period.
(dang my old hard drive crashed and I lost all my pics
It really helps to set up some 8 ft flourescent fixtures, 1 along the ceiling and one along each wall.
These will allow you to see any 'waves and ripples' as you see the reflection of a wavy light in your primer when you're wet sanding it. As far as flammability, if you're using lacquers you'd have a problem. However, polyurethanes and their reducers aren't nearly as volatile.
I was painting in the dead of winter in Michigan, and as a test, took my propane-open-flame-behind-glass-panel-heater outside, loaded my HVLP gun with polyurethane clear and reducer and sprayed it right at the heater! LOL!
All it did was 'vaporize' the spray no matter how much I tried for some fireworks.
I kept it on the floor in the booth in front of the fresh air intake,
so fumes really never 'saw' much of my heater, with no problems.
Now, if you have a hard time seeing because of sooo much vapor/overspray, leave the booth and let it clear out awhile.
It's all about vapor concentrations, when they get to a certain level, whether it be fumes or even flour/grain dust, you WILL have problems. I really can't recommend halogen lights as they will make your booth hot and don't offer much 'usable' light as it is so concentrated. They do make good supplemental heat in the winter though.
Have fun with your booth, few things are as rewarding as a beeautiful shiny paint job you did yourself!