Saltire or St. Andrews Cross Flag:

Legend says that in 832 AD, an army of Scots was facing a Northumbrian army. The Scottish king prayed to St Andrew for help, and saw the Saltire of St. Andrew in the heavens against a clear blue sky. On seeing the cross in the sky, he swore that if the Scots beat the English in the battle that was about to be joined, then St. Andrew would forever be the patron saint of Scotland.

The Scots did in fact win the battle, and from that day on the Saltire has been the national flag of Scotland.

Lion Rampant Flag:

The Lion Rampant flag is the Royal Flag of Scotland. It was only to be used by the King or Queen of the United Kingdom.

The Lion Rampant flag is used universally now as a second flag of Scotland. It fly's over the offices of the Secretary of State for Scotland in both London and in Edinburgh.

The Lord Lyon, the herald responsible for Scottish heraldry, takes the official stance that the Rampant Lion Flag can be waved but that it cannot be flown from a flagpole without his permission. It is rumored that he once threatened the town councilors of Cumbernauld with a parliamentary Act of 1679 which prescribed the death penalty for misuse of the royal arms.