Self flashing windows

Self flashing? The diagram provided by David Valley lack a drip cap.

This is being talked about in several places.

http://forums.jlconline.com/forums/showthread.php?t=31279

http://ths.gardenweb.com/forums/load/repair/msg051455432608.html?5

http://ths.gardenweb.com/forums/load/build/msg0511450014076.html?5

http://bahrr.proboards32.com/index.cgi?action=display&board=Building&thread=1148425115&page=1#1148474155

http://www.iccsafe.org/cgi-bin/ultimatebb.cgi?ubb=get_topic;f=4;t=007539

http://www.ibhs.org/building_codes/view.asp?id=189

Last but not least!
http://www.badstucco.com/ff.htm

I would like to know why the 2002 IRC with North Carolina ammendments code R703.8 (1.) states “except that self-flashing windows having a continuous lap of not less than 1 1/8” over the sheathing…’

What fdoes that mean?

HELP