The Riding is situated in that part of the old World known as the Eastern Marches of the Empire. The Worlds Edge Mountains lie to the east and the Mighty River Reik and the City of Nuln are to the west. Chaos bands are an occasional problem, for the Riding is surrounded by dense woodlands which provide a natural haven for these fell, abhuman monsters. The mountains too represent a threat, for the Riding lies within easy raiding distance of the nearest Orc Mountain dens.
I made a slight mistake as I got my east and west confused ^_^ mostly due to not rotating the page right but for Reik and Nuln to the west, and Worlds Edge to be east puts it in the Averland/Wissenland area. Like I said, I got confused with east and west and had it west of Nuln.
Going by the maps of the time, It doesn't mis-align too much with the later 3rd/4th edition maps.
Oh and as for the Flag.. that's Clearly NOT the English flag. While it can be see as simpler to the cross of St. George, which was taken to be the current English Flag, the trail is very important. That tail makes it a Pennant, which makes it the St. George pennant. It was in fact just used as a Saint flag in regelious combat (in fact, it was Philip II of France which used it on there crusade, which lead to Richard the not very nice (Ist) who then took it up due to him being French and all, and this lead to the soldiers using it but it was quite some time till it got used officially for England and even then, it's tricky.
of course, then you have the people that like to fly it illegally by having the word 'England' written on it, making it technically a desecration to make a stance against the country. Kinda like if you are say Norweign and want England to lose in a match against you, Fly the Cross with the word 'England' on it as a suitable insult ^_^ though this gets very confusing. Could be the Flag of Genoa, which would go with the whole holy roman empire stuff of Later Empire ^_^ they used it far before England and there is... alot of stuff claiming how England kinda ripped them off by taking it because of them but this is gonna get FAR too much off topic ^_^
and of course, this is still 2ed Empire is England... though it was written by Pank (Andrew Szczepankewicz) who I only jut found out died 3 years ago now. Though he was still around..