This was something I saw from Gerald Masters on DM.net. He posts first the relevant portion of law, then the story about President Bush. Wasn't it just a few years ago that the Republicans were all inflamed about flag desecration?

United States Code, Title 4, Chapter 1, Section 8 (g):

"The flag should never have placed upon it, nor on any part of it, nor attached to it any mark, insignia, letter, word, figure, design, picture, or drawing of any nature."

Now the story:

President Bush signs American flags for workers at Beaver Aerospace and Defense after speaking about jobs and economic growth in Livonia, Michigan, Thursday, July 23, 2003.