Anybody know how I can make a 'magelight' particle effect?

Here is an image of what I mean, can anybody help me in creating this effect?

Take that texture, on photoshop / gimp copie it on it’s own alpha channel, save as something with alpha (tga, png, etc).

Create a material and set the shader as Particle → alpha blended or additive. assign the texture.

Create system paricle. Shrink the emitter’s shape size until it’s almost a point (almost). Reduce the speed to smoething very small. Make the size of the particles as random. Enable “Rotation over time” and play with it. And tweak the color.

Taht should be a good start.