For convenience sake, the forgery statue you cited is "18 USC Sec. 506. - Seals of departments or agencies." The statute essentially forbids misuse of the seal or emblem of an official government agency or agent. Even affixing the emblem to a toy or matchbook is a violation!
My discussion of the misuse of government seals can be found at ...
http://www.freerepublic.com/focus/f-news/1217992/posts?page=113#113 <-- #113 & 116
BTW, I was blurring my way through. Thanks for the links.
Um...this would be forgery of an internal military document. Federal offense.