I have the same issue. Just had FRG22D pushed to my Droid and Flash Player won't appear in the market. Neither cycling power nor doing a battery pull has helped.
I got it as well.....and maybe I am dreaming, but I can see all the root files on my phone now in Astro....not the SD card, but all the internal system files.....maybe I just never noticed that before?
I'm hesitant in upgrading... I've already updated from the previous update, and I'm rooted. I'm going to wait for a few more days to see what people are saying.
Do a search on this forum, I believe there was a mentioning for those who can't see the flash update that they may have to force Market to clear a cache and rescan.
Reboot, clear cache and data, then give it up to an hour. If you don't see it by then you might want to install it manually. It's been available for, oh, a couple of weeks now.
Thanks for the advice! I had a hectic day and didn't get to play with things. After reading this, I tried the market before doing anything else, and there it was.
Games work great. Videos? Well not so much. They play. But most I've looked at so far are jerky.