Dallas wrote:
Is the FAA the
final word on regulations for everything in the US airspace with the
military using an additional set of their own regulations?

Please see my reply to C J Campbell's message where I cite what I believe
is the appropriate legislation. The answer is not simple, but congress
appears to have basically made the FAA the principal regulatory agency over
the U.S. airspace and excepting "emergency or urgent military necessity,"
military flights must follow FAA regulations.