Reno, Nevada, October 2, 2007, the flagpole at a local bar displayed the Mexican flag above the US flag on the same flagpole. Section 7g reads, "When flags of two or more nations are displayed, they are to be flown from separate staffs of the same height. The flags should be of approximately equal size. International usage forbids the display of the flag of one nation above that of another nation in time of peace."
This is the same exerpt from the story in my first post. On another website telling different rules and regulations.
http://www.ushistory.org/betsy/flagetiq.html
http://www.ushistory.org/betsy/faq.htm#q76