Flattening of the spinal cord is essentially compression of the thecal sac which surrounds the cord and when severe will cause severe central canal stenosis. Did your MRI state what the diameter of the cord is in the area that you bring up? For instance this is a sentence from my last cervical MRI..."The anterior and posterior thecal sac defects cause a reduction in central canal diameter to an estimated 7 mm, a moderate to advanced AP central canal stenosis." Bone spurs are the result of arthritis, reflecting the body's way of defending against bone against bone pathology which can happen when the discs lose their sponginess or slip completely out of place. Spurs themselves can cause compression. In your case, it would appear your nerve roots themselves are not being compressed but the bone spur is threatening the sac. At this point it is mild but is something that should be watched carefully. What kind of symptoms are you having?