I have opera running but on websites using flash and on youtube I cant get videos to play. When I download it says I have already installed the latest version of adobeflash 10. But why wont it work?

Is others browsers working fine???
Please mention the Distro you are using........
Try different browsers....

Using an acer aspire one, Linux Lite

Gecko/20080612 Fedora/2.0.0.14-20080612.fc8.acer

if you go to preferences->Advanced->Content
make sure enable plugins is checked then click Plug-In Options button
there you can point Opera to /usr/lib/mozilla/plugins
or wherever your plugins are
libflashplayer.so is what you need

Have directed to /usr/lib/mozilla/plugins as suggested but opera still says i need to download flash player? is there another way? or could I have missed something

I'm not sure I understand what you mean by "have directed to /usr/lib/mozilla..." You can place a copy of libflashplayer.so in /usr/lib/opera/plugins. You will have to do this as root or use sudo.
ciao,
jdk

Not directly related to this question, but have you ever considered updating to a more recent distro? The version of Linpus Lite you're using is a poorly maintained version of Fedora8, which is ancient by distro standards.
If you do want to try a more recent distro, I recommend Lubuntu, the lxde version of Ubuntu for the AOA110l

Try running the following 'ldd <path to libflashplayer.so>', i.e. if you have 'libflashplayer.so' installed in '/usr/lib/mozilla/plugins' then type this:

You should receive some results back. What you are looking for is any lines that state 'not found', e.g.:
If you are receiving 'not found' lines then these are dependencies of the Adobe Flash plugin that are not being found on your system because they are not within the usual library paths.

P.S. If Firefox is working with Flash despite seemingly missing dependencies it is almost certainly because Flash itself depends on various Mozilla libraries and your distro has those libs installed within the Firefox directory only, rather than system wide. I have seen several of the smaller distros make this packaging mistake, meaning that Flash only works in Firefox/Seamonkey and not in any non-Gecko based browser.

For example, if libnss3.so was listed as not found but Firefox is able to load Flash look for libnss3.so within the Firefox directory:

You can correct the issue in two ways. Either install the nss package if there is one or symlink the various missing libs from the Firefox directory into the main /usr/lib directory.

By the way, I would strongly agree with qlue. You really don't want to be running such an old distro as you are pretty much asking for problems and I wouldn't trust that all known security issues are patched.