In a post on the company's Air and Adobe Flash Player team blog, picked up by Macrumors, product manager Rob Christensen writes that Flash Player 10.3 works just fine on the new OS, and that the company's previously mentioned problems were based on tests with older versions of Lion.
"The final release of Mac OS X Lion (10.7) provides the same support for Flash hardware video acceleration as Mac OS X Snow Leopard (10.6)," Christensen wrote. "The previous 'Known Issue' described in a tech note suggesting that video hardware acceleration was disabled in Lion was incorrect and based on tests with a prerelease version of Mac OS X Lion that related to only one particular Mac GPU configuration. We continue to work closely with Apple to provide Flash Player users with a high quality experience on Mac computers." Adobe still has issues with Mac OS X Lion and maintains a list.
For more on this story, read http://news.cnet.com/8301-27076_3-20082135-248/adobe-says-flash-cpu-issue-not-present-in-lion"> on CNET News.