Hi Sonya, just to clarify -- which Flash Player do you have now, is it "Flash Player 11 ActiveX"? If you have the Plugin one, kindly try installing Flash Player 11 ActiveX first, and then go back to upgrading Little Reader.
You may download the Flash Player 11.1 ActiveX installer here:
http://www.adobe.com/support/flashplayer/downloads.html#fp11After installing (or reinstalling) Flash Player 11, please try running the Little Reader upgrade again. As an alternative to following the upgrade prompt that pops up when you open Little Reader, you may download the installer (for v2.0.720) from your Account Management page and once you start the installer it should skip asking you about installing Flash Player.
I hope this helps! Do let me know how it works for you.