I am also seeing this problem and it is very annoying.  To clarify what
others have said, I found that the workaround is:

$ sudo su -
$ apt-get upgrade

I found that 'sudo apt-get upgrade' doesn't work as it does not seem to
pick up the http_proxy setting.  Further, if I have accidentally tried
to upgrade without switching to root, I have to remove the flashplugin-
installer package and then reinstall it:

$ sudo su -
$ apt-get remove flashplugin-installer
$ apt-get install flashplugin-installer

-- 
package flashplugin-installer 10.0.22.87ubuntu2 failed to install/upgrade over 
proxy
https://bugs.launchpad.net/bugs/362970
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