I just did a fresh install of Karmic Beta AMD64 and also see this issue
with compiz on Nvidia graphics.

The workaround in #74 works for me (thanks!)

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.

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