Feels a little clunky, but I definitely support the idea behind it and the direction we can go with the update. I agree with others that the symbols need some updating as well, I don't think the # is fantastic. I don't know that you need a ! or WARNING or any red/yellow/orange colors, even something that just says, "This user has feedback" click here:_____ to see it would work. My only major complaint to this point with the trust system was that red or green letters and arbitrary numbers can be misleading. Just saying, Hey this guy has feedback, why don't you check it out is useful in my opinion.
Separating the, this guy likes lemons! Anyone who doesn't like lemons should avoid this trader! And, hey this guy scammed me, without disallowing either is a good step.
*edit*
"Hello, beloved crypto community. I'm Josh Zerlan, better known as Inaba on BitcoinTalk. Feel free to search Google for "Inaba", whereupon you'll be hard-pressed to find any nefarious activities in my name. In closing, Sonny and I are getting the Butterfly Labs Band back together."[/center]
Sounds and looks trustworthy to me. Where are the victims?

How are the existing ratings converted into the new flags?
They're not. I decided that too many negative ratings aren't flag-worthy, and there's no way to automatically determine it. If you believe that a past negative rating is flag-worthy, you'll need to create a flag.
No one has flagged them yet.