It was because I was running at 16 bit color depth. Changing it to 24 bit color dept in xorg.conf fixed the problem.
Lots of articles in the internet about it. Oddly enough it was not an issue with the older Ubuntu 6.06. -- Firefox 2 and Flash crashes https://launchpad.net/bugs/69710 -- ubuntu-bugs mailing list ubuntu-bugs@lists.ubuntu.com https://lists.ubuntu.com/mailman/listinfo/ubuntu-bugs
