I just did a fresh install of Karmic Beta and also see this issue.
Some additional information: Normally when hovering over clickable areas in flash a "hand with finger" pointer is shown. When (and only when) "desktop effects" are enabled pushing down and holding down the mouse-button changes this pointer into a regular arrow. Any mouseover highlight on the button is lost as the pointer changes. Somehow it seems compiz steals focus from the flashplayer when the button is pushed.
I just did a fresh install of Karmic Beta and also see this issue.
Some additional information: Normally when hovering over clickable areas in flash a "hand with finger" pointer is shown. When (and only when) "desktop effects" are enabled pushing down and holding down the mouse-button changes this pointer into a regular arrow. Any mouseover highlight on the button is lost as the pointer changes. Somehow it seems compiz steals focus from the flashplayer when the button is pushed.