Have you tried activating the flash plug in from the settings section on the XMB? If you can watch videos on YouTube.com then your flash plug in is enabled. Also, after opening a site with flash content, the PS3 browser will ask you if you want to display the embeded content or something like that, when that happens click yes.
I have found some sites that have flash content that can't be displayed on the PS3 browser, I think that flash player version is not the most recent one and only the developers of Adobe Flash Player, PS3's browser, or Sony can update that issue. So don't try to update your flash player through the web. I think that linux update you downloaded is on your hard drive but wasn't installedd at all.
I've been hoping after each firmware update they upgrade their browsers and flash plug ins both for the PS3 and PSP to play some cool flash games I have developed.
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