Well... I guess it depends on which side you are standing, in order to determine if the flap is open or closed. Especially since once it is closed to the outside, it is open to the inside.
Looking at the pictures (taken from inside the car-through the glove box) I would say that the flap in the picture is "open" (or really close to it) and that it is in recirculating mode... - that is assuming that the engine is running, and you have the A/C on.
I have had mine apart on the 88 SEL and when it is recirculating the flap is open, and is definitely sucking in air from within the cabin.
Hope this clarifies what I was trying to say earlier
-Larry