Now for the fun part! In order to run Flash, you have to enable it for specific sites only. You should never choose Allow sites to run Flash unless you have a really valid reason like using Chrome in a virtual machine or something. Obviously, if you want to completely block Flash in Chrome, select Block sites from running Flash. Make sure that the Ask first before allowing sites to run Flash (recommended) box is selected. In the popup dialog, scroll down until you see the Flash heading. Scroll down some more and then click on Content Settings under Privacy. Scroll down to the bottom of the page and click on Show Advanced Settings.
Now click on the Chrome menu button at the top right and click on Settings. Under Adobe Flash Player, click the Check for update button. Open another tab and type in chrome://components. Make sure that Prefer HTML over Flash and Run all Flash content when Flash setting is set to “allow” are set to Default.