I have a PC in my table with all abilities of the lamp. He took all the additional abilities of the Heart of the Wild book as well, which makes the powers of the lamp even more confusing and out of control.
EVERY game session he uses the lamp we end up discussing this or that... ok... this is not an easy player and always tries to take advantage of the situation, but nonetheless, the rules are not so clear on ANYthing except a few couple items.
The way I see this lamp:
Every ability is THE action for the round. In the rulebook it says that every combat round you can perform a single significant action... since every ability of the lamp has a different effect I do consider that to be a significant action and the ONLY action you can perform in the round.
The different actions are:
1- Spend a hope to light a torch or something similar and make everybody to look at it unless they spend a point of hope or hate. (I rule that everybody has to spend hope or hate, but I also allowed the character to put the light inside a bullseye lantern, so he can point it to a general direction)
2- If the light is up then he can snuff it out either just because, or to weary everybody CLOSE to the flare. I rule this is the enemies engaged with whatever is holding the lamp at that time.
3- If the light is up and an enemy has not spent 1 hate yet to ignore the enchantment effect you can put him to sleep.
These extra are from the HotW
4- If the light is up you can make it flare with a Blazing light which makes everyone with Hate Sunlight lose 1 hate and Denizen of the Dark lost for 3 rounds. This can be repeated or "maintained" every round spending the action for that round. Otherwise the Blaze is off, but the light continues to be on as per ability 1. I rule that while this is ON the regular elf light effect from item 1 is out.
5- If the light is up you can spend 1 hope to avoid being engaged in combat for Wisdom rounds unless the enemy that wants to engage you spends 3 hate points. I rule that while this is on you can not use 1-4 abilities unless you choose to stop this one.