"The Lives of Others" is the English version. It's about life under the Ministerium für Staatssicherheit, a.k.a., Stasi.
There is ZERO difference between flag@ and the main action of the Stasi, getting citizens to inform on each other for not following the ruling party.
I've been telling everybody I know about that movie for the past several months. I watched it for the 5th or 6th time last Saturday and it really got to me in the wake of the White House's citizen snitch program. I was drafting a new thread to promote it on this site, but didn't want to be a noob posting a vanity thread.
Great movie