Merging these. Could you explain the details on how to repro this? I'm guessing the flag is hitting the interpolated bounding box and stopping.
I do think the flag should obey Newtonian Physics. It's weird how I would be bunny hopping at 50 MPH, then I die and the flag doesn't go 50 MPH in the direction I was going. It just stands still.
I think there's actually a setting for that (like item_addplayerspeed or flag_addplayerspeed or something like that), but it has some issues, so it's not enabled by default. For example, if you're running along and you want to drop the flag, you end up dropping it and picking it back up again immediately. Also, when it's dropped straight down, you know how close you made it to a capture point. If the flag kept moving, it would look like you died after crossing the threshold of the capture point not inches away from capturing it.
