I found an easier way to fix this problem. On 64 bit systems by default I/E uses the 32bit version (256- bit) this is where the problem starts, not impressed ok do simple test to prove my point. Open your default I/E navigate to page that uses flash, notice no problems if you have flash installed. Click the about box you will see it the 256 bit I/E. Now go to start menu open Internet Explorer (64-bit) navigate to same page you did for flash test notice it says you have to install flash. Your thinking I already have it installed wrong. You have to install flash for both versions, backwards ya I say.
So now how fix it, there is 2 ways
1.) Install flash for 64 bit as well, drawback every computer that uses your application would have to install for 64 bit, which most people use the 32 bit so would inquire one to install for both I/E to rid of the dreaded Flash.ocx problem
2.) Best way change platform mode to 86x in the configuartion mode, this would make it stop it from verifying if flash is installed for 64 bit I/E