I can confirm this issue is present in the latest Karmic updates. After
installing the flash plugin from Adobe's website:
http://labs.adobe.com/downloads/flashplayer10.html

clicks work perfectly. BUT it crashes firefox when opening GMail. In
case of Chrome, it flags an error saying the flash plugin has crashed. I
believe it is a Flash plugin bug rather than compiz / firefox / chrome
issue.

-- 
flash does not recognise mouse clicks
https://bugs.launchpad.net/bugs/410407
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