Hi,
In prepareinstallsingle.pdf for Livecycle 8.2, there is :
Development environment hardware requirements:
● Adobe Flash Player 9 or later: 512 MB of RAM (1 GB recommended)
So your version seems to be good :(.
Try to go back to Adobe Flash Player 9 to see if it solves the issue.
Furthermore, Flash Player 10 have issue with the Reader Extension sample ->
http://kb.adobe.com/selfservice/viewContent.do?externalId=kb407403&sliceId=1I found this on a blog :
For the Workbench, I need to have FlashPlayer 9 (somehow it wont work with FlashPlayer 10), but I can not have Acrobat Pro installed. With that, the installation order becomes:
1. uninstall all FlashPlayer versions.
2. install Flash Player 9 ActiveX (from the LiveCycle ES download).
3. install LiveCycle Workbench.
...
7. update your FlashPlayer to version 10.
You could try this too.