Comment 17 for bug 444757

Having exactly the same issue with latest karmic beta,

Used the link provided by andrew (http://labs.adobe.com/downloads/flashplayer10.html) to get the latest flash player version.
Tried to replace the /usr/lib/flashplayer-install/libflashplayer.so with the new version but did not work, no idea why.
Finally i had to uninstall flashplayer-install and manually copy libflashplayer.so in /usr/lib/mozilla/plugins/

Everything now works fine even with compiz turned on. Will try to reinstall flashplayer-install when karmic will hit the final release stage. Hope it will help.