Cliff: Yo missed one thing -- it is USUALLY the custom to fly the US flag, but not always. In a maritime environment -- such as the Carolina Yacht Club at Wrightville Beach or on a ship it is NOT the US flag that flies on top -- rather the top flag is the yacht burgee (a temporary flag until a signal flag is set).
It is the maritime display with a "mast, yard, and gaff" which causes the most confusion. This puts the club burgee in a higher position physically, but not above that of the U.S. Ensign (flag) symbolically. By the normal Flag Code provisions, this would seem to be an incorrect display. The tradition of the seas, however, is to hold the gaff as the position of honor; thus, the intent of this tradition and display is to give proper respect to the flag.
Please look at the above link for more info!
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