Ive got one of those, but its brass/ copper. I got it working with little effort. Using the original wadding with a new wick. Another good WWII pipe/ cig lighter is the Austrian IIMCO lighters. The cylinder pulls out for ease of lighting your pipe. Ive heard they finally stopped producing them after about 80 years of production. Not 100% sure though.
They sure don't make lighters nowadays like they used to ... I am sure that, if that lighter has seen action, it has been abused - all sorts of hostile conditions. Amazing, good find sir!!!
I was always finding the 'Tommy Lighters' in rummage sales when I was a kid which were incredibly popular in WW1 with some made from cartridge cases. In a drawer back home in the UK I have a small Krupps shell case that has the side cut off and a cartridge soldered onto the side to hold a wooden stake that would have been stuck into the mud trench walls with a burning wick for lighting cigarettes!
condorlover1, I have read about such an improvisation in one of Eric Maria Remarque's novels, but have never seen one. Perhaps you can find a picture somewhere and post?