Matthew,
There are Three (3) X's to replace, Mate.
<!-- Wy Country Flags Start -->
<if condition="$post['fieldX']">
Country: <img src="http://www.Yourforum.com/images/buttons/flags/$post[fieldX].GIF" alt="$post[username]'s Flag is:
$post[fieldX]" border="" />
</if>
<!--// Wy Country Flags End -->
You have missed out the code that is in Bold Green.
That gives the name of the country flag that that user has chosen, when you hover the mouse over their flag.