Answer:
What flares up and does a lot of good, and when it dies is just a piece of wood?
What goes around and around the wood, but never goes into the wood?
What is full of holes but still holds water
Some try to hide, some try to cheat. But time will show, we always will meet. Try as you might, to guess my name. I promise you'll know, when you I do claim.
I have an eye but cannot see, You'll head inside when you see me.
You use it between your head and your toes, the more it works the thinner it grows.