Hi Nexus 7 owners....
I'd just like to share my personal experience on the issue...
I tried 3 browsers with the above version of flash.
Now, for dolphin, it is fast, but if you try to press that little square icon that takes you to fullscreen mode, the browser crashed every single time at least for me.
As far as puffin is concerned, it was the worst because the videos were laggy and it didn't even respond to the fullscreen icon. (must admit though loading times on this thing, if you dont care about the flash issues, are blazing!!!)
Firefox although loads heavy pages by far the slowest, was the only one from the three that had no lag and the fullscreen icon worked!!! So, until now, thats my choice for flash vids.
What I did notice on all of them, was that the sound of the vids was pretty lower than usual. Anyone else witness this????
Oh, and another thing so there wont be misunderstandings...
There are other ways ofcourse to do the whole flash thing, MAYBE even for stock browser from what a friend tells me, BUT that requires rooting the device. (just for the record)
Many thanks to XDA and everyone else and please share your thoughts on the sound issue and also if you find a browser that does the job like firefox beta, but FASTER!