Either way, if you check out this page in the docs, your problems should be solved:
Go to: Dynamics - Soft Bodies - Paint Soft Body Weights Tool
The example on this page shows you how to pretty much paint weights on a hanging drape, but the same idea applies to a flag
Good luck!
PS, that way, you don't need to worry about springs unless you want to
Israel "Izzy" Long
Motion and Title Design for Broadcast-Film-DS
izzylong.com