This was indeed the case. Worked with Macromedia support found that their install does not always successfully register the OCX. Manually registering it from the Run after installing got it working properly.
Regsvr32 c:\windows\system32\Macromed\Flash\Flash9.ocx
Note: user may have something other than Flash9.ocx (such as Flash8.ocx) as it is version dependant.
If the above fails, it is most likely because you don't have permission to
write to the directory or the registry outlined in this technote:
http://www.adobe.com/cfusion/knowled...fm?id=tn_19148