It still is not fixed in Ubuntu 12.04.2 on March 19, 2013.
However my understanding is, that it affects only 64-bit editions, using Compiz 
(3D accelerated) Unity.
For me checking off of hardware acceleration did't work, but I found that 
awkward workaround for this is logging into 2D session (click on Ubuntu logo in 
login screen and select Unity 2D).

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https://bugs.launchpad.net/bugs/865672

Title:
  "Adobe Flash Player Settings" dialog does not respond to mouse clicks

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