Bug seems to be fixed with new flash update!
LANG=C apt-cache policy flashplugin-nonfree
flashplugin-nonfree:
Installed: 10.0.12.10ubuntu1
Candidate: 10.0.12.10ubuntu1
Version table:
*** 10.0.12.10ubuntu1 0
500 http://gb.archive.ubuntu.com intrepid/multiverse Packages
100 /var/lib/dpkg/status
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[intrepid] Flickering flash-menu
https://bugs.launchpad.net/bugs/278097
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