I like it! Difficult to interpret as well...she sets me in fire......'set in' might mean awaken to a world. Probably love. 'Fire' probably refers to pain of some kind. So perhaps the literal meaning might be 'she has awaken love within me, then made it a world of pain'.
Then we go onto the dialogue. Well she says your in pain, I'm not. Some kind of breakup in the relationship here....and at the last line she realizes how badly she has made you feel.
I really love this. And I like Mark's comments about it, but I interpreted it as, here are your flaws, and I'm above you, I am better! Maybe I sound silly but it's almost as if "she" is inexperienced and doesn't understand how things feel quite yet. Like the child that hasn't touched the burner yet. Here I am making a fool of myself too :x
I thought I understood what it meant until I came to the last stanza...at which I became completely lost. :-)
My interpretation: the woman talking is saying to the man that he is a person way above her...whom she may never be worthy of. The man replies that in essence, whatever he is, is fully deserved by her...because she ‘sets him in fire’ or is one of the reasons why he is the way he is. She thinks she is not deserving to have him, thus 'she touches me' or when she returns the love this man has for her, 'her finger burns and she starts to cry' she hurts because of this belief/ or because she is full of inferiority.
A thought-provoking write and wonderful that it is open for interpretation.
I agree with Mark's comment...and I'm also thinking two people
are trying to instigate each other to see which one is the true one. Its
like a cycle one warns and says don't but the other's curiosity gets the
better of her and learns her lesson. Or I'm completely wrong!
PS: Just one thing, "She sets me in fire" I think on will sound better
rather then in-She sets me on fire...just a suggestion