Here is some information straight from SNOPES.COM
MYTH: The Confederate Battle Flag represents racism today.
FACT: The Confederate Battle Flag today finds itself in the center of much controversy and hoopla going on in several states. The cry to take this flag down is unjustified. It is very important to keep in mind that the Confederate Battle Flag was simply just that. A battle flag. It was never even a National flag, so how could it have flown over a slave nation or represented slavery or racism? This myth is continued by lack of education and ignorance. Those that vilify the Confederate Battle Flag are very confused about history and have jumped upon a bandwagon with loose wheels.