The Obama flag ... it is kind of disturbing. It is also against the flag code; §176. Respect for flag ... (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, though not illegal. Just because it is not illegal does not mean that it is not improper.
Picture from Pamela Geller with the simple title "Not a photoshop!"
Free Republic finds the likely seller who is asking roughly $5 for the flag.
Gateway Pundit refers to it as "desecrating the American flag" and points out that it at least is the second time.
Picture embedded below.