Thanks for the information. I'm still seeking the document or order issued between 1858 and 1861 that stated the New York state regimental flags should use N.Y.S.V. (and later N.Y.S.V.V. as well). Maybe it was just assumed that when a regiment was called Volunteers instead of Militia that the flag makers used "V" instead of "M", New York did supply both. Example the 1st Regiment, NY Volunteer Infantry and 2nd Regiment, NY State Militia.
Ed