Under View in the Menu bar, you can select Flagged only for a folder.
You can create a custom Mail view to show all flagged items.
Diane, I think you're misunderstanding our question. The initial question clearly states that we're using Entourage 08, and wondering about the disappearance of a feature found in Entourage 04.
In Entourage 04, flags were visible in the collection of folders that appears on the left side of the main window to indicate that the folder contains flagged messages. Entourage 08 does not support this.
The "To Do List" shows flagged items, but no preview pane. This requires opening a new window to read the flagged messages.
We liked being able to see the flags in the collection of folders.