In case anyone else runs into this. Here is the steps needed to address the problem.
After installing the flash plugin:
Disable Hardware Acceleration:
Open a flash video > Right click video > Settings > Uncheck 'Enable Hardware Acceleration'
Disable protected mode:
Edit the file found at: C:\Windows\System32\Macromed\Flash\mms.cfg
-> Add [ProtectedMode=0] (without brackets).