Did anyone notice in Bush's speech...

[Drakonix]

Or could it be that the flags are partially behind the backdrop panels?

That appears to be the case. It looks llike they obscured part of the flags to get the army logos, flags, the podium, and the background behind the speaker to set in frame with proper perspectives.

The current flag has 7 red stripes and 6 white stripes, and 50 stars in a blue background. The pattern of stripes starts and ends in a red stripe, with interleaved white stripes. The stars are 9 rows staggered horizontally and 13 rows staggered vertically.

Edit: Actually, you can see ten stripes on the right side flag. A bit of white on the left edge.

The 13 stripes stand for the original 13 colonies
The 50 stars stand for the 50 contiguous states.

Here it is: