We use (a part of) this plugin on our website
http://www.mobilyz.com.
I am trying to fix the flash upload issue since our editors are getting really annoyed by the issue.
If anyone has some helpful info for me (or tried to fix it themselves but dit not succeed, please let me know. In the meantime I will try to find the error and fix it. If i am able to find it I will, ofcourse, post the solution here. Any info on this matter would be appreciated.