I got this from a website. At least according to this one source, flaxseeds are much better than the processed flaxseed oils. To get the maximum benefit from the flaxseeds, they should be ground up (that's what I do in my food processor). Note the last sentence.
Q. What about flaxseed Oil and/or flaxseed oil supplements?
I do not recommend the use of flaxseed oil or flaxseed oil supplements. Like all oils, flaxseed oil is a concentrated source of calories. Also, there are other benefits to consuming whole flaxseeds that would not be available in the oil. One of these is a type of fiber found in flaxseeds called lignans. Lignans have been shown to have anticancer effects and are associated with a reduced risk of breast cancer. Additionally, flaxseeds are a good sources of iron, zinc, calcium, protein, potassium, magnesium, vitamin E and folate. These important nutrients play many beneficial roles in health maintenance and disease prevention. Flaxseed oil is pure fat and virtually void of all or most of these nutrients (except for vitamin E). Flaxseed oil is also a Poly-Unsaturated fatty acid (PUFA), and there is evidence that extracted PUFA oils can suppress the immune system, and possible increase growth rate of certain cancers and/or tumors. If you want the benefit of flax, eat the seed and avoid the oil.
Q. Is there any research linking flaxseed oil to cancer?
A. Research from Charles Myers, MD, at the University of Virginia Medical School in Charlottesville showed that flaxseed oil causes a 300% increase in the growth of prostate cancer cells. Dr Myers said, 'It is the most powerful stimulus we know of for prostate cancer cells.' This information appeared in an article in the February 2000 issue of his Newsletter, Prostate Forum
I wrote him personally and was sent the following references.
P.K. Pandalai, et al. "The effects of omega-3 and omega-6 fatty acids on in vitro prostate cancer growth" Anticancer Res 16: 815-820, 1996
E Giovannucci, et al. " A Prospective study of dietary fat and risk of prostate cancer" Journal National Cancer Institute" 85: 1571-1579, 1993.
P Gann, et al "Prospective study of plasma fatty acids and risk of prostate cancer" Journal National Cancer institute" 86: 281-286, 1994
S.O Anderson et al, "Energy, nutrient intake, and prostate cancer risk: a population-based case-control study in Sweden" International Journal of Cancer 68: 716-722, 1996
P.A Godley, et al "Biomarkers of essential fatty acid consumption and risk of prostate cancer carcinoma" Cancer Epidemiology Biomarkers and Prevention. 5:889-895, 1996
S Harvei, et al. "Prediagnostic level of fatty acids in serum phospholipids: omega 3 and omega 6 fatty acids and the risk of prostate cancer." International Journal of Cancer. 71: 554-551, 1997
He says that while there is no benefit shown to flax oil, these studies do show a negative effect. He also states that the whole flaxseeds may offer some benefit.