I don't have flash installed, although I use Chrome.
Just got this after watching a 1080p video
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It's pretty frustrating dealing with Apple Tech Support because they won't acknowledge this as a Lion problem. There's a lot of people with the same issue and this is the 2nd 2011 27" iMac (Full Spec'd) I have with the exact issue.
Yeah, this is a big issue. Happens on my 09 mbp. Lion, in the end, isn't for me...right now.