Apparently the organizers of the Antelope Valley Fair in the California desert inadvertently chose to festoon their venue with LGBT rainbow flags. A local blog documents the official and community reaction:
ordinary-gentlemen.com/burtlikko/2011/08/19/that-flag-means-what-now/
Underscores the need for more widespread flag education, this does.
Portland Flag Association 
As one of the new OUTreach Center board members, I have spent the last two days emailing and calling to reach the Fair Board. I am most concerned that the “Everyone’s Family Day” we organized for Tuesday will be less safe for our youth in the Out Project. We are a small group with little political experience or connections in such a conservative area, and just want to make our kids feel a little less invisible, a litle less vulnerable. After the recent hate crime graffiti in town “Kill the gays,” this has really hit a nerve. We are simply trying to stand up and say we are part of this community too. Thank you for spreading the word.
The Advocate has picked up the story:
http://www.advocate.com/News/Daily_News/2011/08/20/Calif_Fair_Removes_Rainbow_Flags/
In the comments there is a discussion of 6- vs. 7-stripe rainbow flags and whether both versions are Pride flags or not. Within this there is a reference to a John Birch Society conspiracy to keep Pride Flags from being mass produced:
“After [the Pride flag with a seventh, indigo colored stripe] was designed, the flag manufacturers, all John Birchers, decided that halting production of that color, which is not used in any country’s flag, would eliminate it. When supplies dried up, the flag was redesigned. Don’t ask me to verify this, as there is no evidence today that I can find, but that was the story at the time.” (posted by Sam Molloy, Louisville, 8/20/2011 11:14:03 PM)
Anyone heard this story before, or know of any evidence pro or con?