Pardon my ignorance, but what exactly is this term "flat wheel"? Do steel wheels actually develop flat spots or is this just a term meaning that the wheel slides along the track without turning with no physical consequence? And if it does develop a flat spot, can we actually hear one on a passing train?
Right on. Wheels slide and grind against the rail, making flatspots. You can certainly hear them...especially on this video:
http://www.youtube.com/watch?v=cWzL2j7m8-s