Laura,
The consensus of modern historians is that WD#32 was that
of the 3rd Alabama Inf. The yankee captors seemed convinced
that the flag belonged to a South Carolina unit. The truth may
never be known. The flag itself survives at the Confederate Relic
Room in Columbia, SC.
A 2013 visit to the Oneida County Hist. Soc. failed to find the Palmetto
flag you speak of. Also missing was a signal flag taken at Fort Fisher, NC.
The Society does have a photo showing all their flags including the two missing
Confederate captures in a trophy case type setting.
See also a National Tribune article of Jan. 13. 1898 which mentions the flags
in the photo.
Welcome to the world of "flag madness".

Ken