Hi Denise,
What format are the South America flag files you are trying to import? Are they image files (like .jpg)?
If so, what you need to do is to create individual word files in Little Reader.
For a walk-through, please see this:
http://forum.brillkids.com/little-reader-how-tos-and-faqs/how-to-create-words-in-little-reader/and this may also be helpful:
http://forum.brillkids.com/little-reader-how-tos-and-faqs/how-to-create-a-category-in-little-reader/Basically, under Word Library, you would create individual word file items by pressing the "+NEW" button under the Word File window. Then specify the name of the item, eg., "Argentina", and then EDIT the word to begin adding the different multimedia files to it such as those flag images, your pronunciation file of "Argentina", etc.
I would also suggest running through the Video Tutorials. You may find them in your Start Guide in Little Reader, or here:
http://www.brillkids.com/little-reader/basic/little-reader-homebasic-tutorials.php?g=side-menuIn particular, see the "How to Edit Words" tutorial.
Please let us know if you have any other questions.