Well - I'm almost gonna side with the school on this one. Mainly because I think using the USA flag to make clothes out of - or making clothes to look like the flag - goes against the rules of use for it.

The Flag Code says in 176.d
(d) The flag should never be used as wearing apparel, bedding, or drapery. It should never be festooned, drawn back, nor up, in folds, but always allowed to fall free. Bunting of blue, white, and red, always arranged with the blue above, the white in the middle, and the red below, should be used for covering a speaker's desk, draping the front of the platform, and for decoration in general.


In addtion, the headline to this story is a bit misleading as it says "High School Bans American Flag" - the flag wasn't banned...

http://www.nbc17.com/midatlantic/ncn...9-11-0027.html