I looked it up, but this was only mentioned once in this thread: http://www.mmowned.com/forums/wow-ex...les-flags.html, but I had figured this out myself beforehand and that thread lacked anything close to an explaination.
If you summon your Argent Gruntling, you'll be able to talk to him to have him wave a faction's flag of your choice. Once spoken with, however, there is no way to change or remove said flag.
This is where the bug comes in. If you have a nearby person summon their Argent Gruntling, you can speak to it to put on flags. But rather than going to that Gruntling, yours' will stack the flags you want. This can be done until the nearby individual chooses a flag themselves, thus not allowing for the chat possibility otherwise available with right click.
Picture I took myself:
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