The latest reg doesn't have the ACUs yet, but here's the text for the BDUs from Army Regulation 670-1 (Wear and Appearance of Army Uniforms and Insignia):
28–18. Wear of full-color U.S. flag cloth replica
c. How worn.
(1) When approved for wear, the full-color U.S. flag cloth replica is sewn 1⁄2 inch below the right shoulder seam of the temperate, hot-weather, enhanced hot-weather, and desert BDU; the BDU field jacket; and the cold-weather uniform (see fig 28–135). If the SSI–FWTS is worn on the right shoulder of the utility uniform, the full-color U.S. flag cloth replica is placed 1⁄8 inch below the right shoulder sleeve insignia (see fig 28–136). The SSI–FWTS is not authorized for wear on organizational uniforms, unless indicated above.
(2) The full-color U.S. flag cloth replica is worn so that the star field faces forward, or to the flag’s own right. When worn in this manner, the flag is facing to the observer’s right, and gives the effect of the flag flying in the breeze as the wearer moves forward. The appropriate replica for the right shoulder sleeve is identified as the reverse side flag.
I never like the idea of the flag being subordinate to the combat patch. I'm glad they fixed the placement of the flag on the ACUs and put it on top.