Adobe Flash is directly integrated with Google Chrome and enabled by default. Available updates for Adobe Flash are automatically included in Chrome system updates.

http://support.google.com/chrome/bin/answer.py?hl=en&answer=108086

by default, chrome uses inbuilt flash player plugin.

However we can enable the latest Flash Player plugin installed on system to be used by Chrome.

1) Delete the "gcswf32.dll" from the installdir of the Google chrome.

This will enable the newly installled Flash Player plugin.(This solution works for me!!)

OR

2) Manually Enable new plugin from "chrome:plugins"

This will make change in to “Preferences” file located at “%userprofile%/Local Setting/Application Data/ Google/Chrome/User Data/Default”

This file contains information related to all other Plugins , their state(enable/disable), DLL locations(hardcoded user specefic paths ) and other preferances .

***However, replacing this file will hamper the functionality of the other already instralled plugins.