Rob,
Thanks for writing up some of the sources. In my view it lends credence to the view that it was the flag of the 12th Alabama and not the 26th, that fell into the hands of the 88th Pennsylvania. One interesting observation is that a portion of the Mummasburg road at the crest is not visible to the Federal line, meaning that it served to protect the Confederates there for awhile until the Federals extended their line northward. I am of the opinion that a portion of the 26th occupied that position, while the 12th Alabama was more exposed in the open field to the west, off the left flank of Iverson. Another comment involves the "friendly" fire from the Confederate side - some of it also came from the 3rd Alabama after it had pulled back from the right of Iverson and went back into the fight upon the advance of Ramseur, but this occurred a little later in the action. Also, as you note, some of Iverson's skirmishers were north of the road - they were in place at McLean's barn before O'Neal's advance.