Acknowledgements go to Jayefbee and nmjferguson for providing following instruction:

1. Go to Layout
2. Add a gadget (make sure it is the add a gadget button above the sidebar you want to add it too)
3. Click HTML/Java script
4. Add a title if you want (Flag Counter or whatever)
5. Post in your flagcounter code in the box below title
6. Click save (at bottom)
7. Save arrangement (at the top of the main layout page)
8. Refresh your webpage

The flag counter cannot be displayed on a Blogger blog if you use the Interactive Views Template. You will need to switch to a different type (Simple, Awesome Inc., etc.) and then follow the above instructions.