I have a couple of boxes of Wilton fondant, and as many of you know it doesn't really taste good. Is it possible to mix it with flavored extract? Is there any way that I can make it taste better?

You can mix it with homemade MMF as in this recipe.  http://www.youtube.com/watch?v=SJCUy3ezRxE&list=TLV1dp5LDs9eF66FFD9zAdcCHOKsmi-5tx

ASave it to use to make figurines, bows, etc it's great for that stuff!

Yes, the 2 suggestions above.

Wilton has wonderful workability.  When mixed with Duff's, Fondarific, Satin Ice, FondX, Chocopan, or MMF, you get the best of all worlds--great taste, an easy to use product, and a less expensive product.  I find that a 1/3 "other" plus 2/3 Wilton works best for me.  I always have a few pounds of Wilton on hand.

As for making figures, a half tsp. of Tylose added to 1lb. of Wilton works very well.  If I want 50/50 paste for bows, I add a half tsp. to 2 lb. of fondant.

Thank you.