All you ever wanted to know about the flag:
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"Title 4 U.S.C. 3 provides that anything put on the title 4 U.S.C., 1, 2 American Flag such as gold fringe MUTILATES the Flag and carries a one-year prison term. This is confirmed by the authority of title 36 U.S.C. 176 (g). The gold fringe is a fourth color and represents "color of law" jurisdiction and when placed on the title 4 U.S.C. 1, 2 Flag, mutilates the Flag and suspends the Constitution and establishes "color of law" jurisdiction (Refer to title 18 U.S.C. 242, see Black's Law Dictionary).
As provided by title 36 U.S.C. 173 and Army Regulation 840-10, chapter 2-1(b), the Flag of the united States of America is defined and described in title 4 U.S.C. 1, 2. Civilians must use the title 4 U.S.C. 1, 2 Flag (see title 36 U.S.C. 173 and Army Regulation 840-10, chapter 2-7) and when military flags are displayed by Army Regulation 840-10, chapter 2 and title 36 U.S.C. 175."
According to Army Regulations, (AR 840-10, Oct. 1, 1979.) "the Flag is trimmed on three sides with Fringe of Gold, 2 1/2 inches wide," and that, "such flags are flown indoors, ONLY in military courtrooms." And that the Gold Fringed Flag is not to be carried by anyone except units of the United States Army, and the United States Army division associations."