Here's an "unedited video" on YouTube. A creepy looking veteran decided to tear a Mexican flag because it was flown atop a pub above an American flag. He left the Mexican flag on the ground, and ran off with the American flag. According to Infowars.net, the man said, "I'm Jim Brossert and I took this flag down in honor of my country with a knife from the United States army. I'm a veteran, I am not going to see this done to my country. If they want to fight us, then they need to be men, and they need to come and fight us, but I want somebody to fight me for this flag. They're not going to get it back."
Apparently, some wingnuts think the actions undertaken by the nutcase on the video was, uh, okay. (Apparently, wingnuts think stealing is okay under certain circumstances.)
First of all, if you're so hyper-patriotic that the position of the flag relative to another flag matters to you, get your head checked. Also, the owner of the bar apparently didn't mean any insult to the United States. He was flying an American flag; he probably knows there are jingoistic asholes like Mr. Brossert who have such small dicks that they'll start a fight because of a perceived swipe at their country. I doubt he wanted trouble.
Finally, the one thing nobody is remembering, is that the First Amendment guarantees you the right to fly the flag any which way you choose. So, when it comes down to it, the only crime that was committed was vandalism and theft, and that was by Mr. Brossert.
If you care, here's the federal law about displaying the flag.