Couple of problems I can think of, unsure if 1 of them is even possible.
1. Has flash installed along with pepper, other version is also disabled and not being enabled, when pepper is being disabled.
2. Unsure if this is even possible. There are 2 distinct versions of flash. One for IE and a different 1 for all other browsers. Could it be the 1 you have downloaded is for IE. This is where I am unsure as to if it will even installed into Chrome.
3. Bad install of either Flash or Chrome. I would uninstall all and start anew.
Guess the reason for questioning Flash version. OP stated, would not work in FF either. Installed Flash would be for both of these browsers.
Edit....just did a search, there also appears to be a problem with chrome version 32 and flash 12. Going back to version 31 and stop updating seems to be fixing some of this.
Edit 2...Chrome 32.0.1.700.76 m and flash 11.7.700.224 is my current setup and works ok, just checked, as I normally played in Opera.