Mansfield Flag Controversy

So a woman in a Texas hospital hangs an American Flag in her shared office workspace. One of her office-mates was offended by this act and asked the hospital to have the flag removed. After a huge public backlash, the hospital agreed to let this woman hang her flag. Was the request to remove the flag so outlandish? There's a flag flying in front of the hospital - is that not enough? Why should another worker, one who is, for one reason or another, offended by the presence of the flag in his or her office, be forced to live with it?

Clearly, my opinion on the matter is that no person should be subjected to any kind of undue discrimination in a place of employment. If McLucas (the woman who hung the flag) had a private office, then by all means, she has every right to hang her flag. This is, however, a shared workspace. How would she feel is a Saudi or Lebanese chose to hang his or her respective flag in that same space. Would McLucas mind? Would passers-by notice? Would others be offended? Most certainly someone would have a problem. The hosptial was right to ask McLucas to remove her flag and acted responsibly in doing so.

My problem is this - McLucas is the mother of a soldier who is currently fighting in Iraq. Understandably, she wants to support her daughter and all of the others fighting for our country. However, when that support infringes on the right to a non-hostile workplace of another, said support should be removed from the work atmosphere. As I said, the hospital was correct to ask her to remove the flag, but recanted after being the target of unmeasurable public scrutiny and criticism. Were someone to display a statue of Buddha (or any other religious icon, for example) in his or her shared workspace, would that person be asked to remove the statue? Save your breath - hell yes!

The questions I'm asking are simple:
1) Does McLucas' affiliation with the armed forces make her privileged (in the sense that she is being held to a different standard than others)?
2) If so, why is that privilege justified?
3) If not, why did the hospital allow her to hang her flag when all was said and done?

Here's a link to the story: http://cbs11tv.com/local/patriotism.at.office.2.1020415.html

Please, I'd like to get some feedback because I'm having trouble understanding why this woman would be allowed to offend another person in her place of employment! Don't forget to vote for your opinion in the box to the right.