Adobe has added support for InPrivate browsing in Adobe Flash Player 10.1. Most modern browsers including Internet Explorer 8.0+,Mozilla Firefox 3.5+,Apple Safari 2.0+ and Google Chrome 1.0 supports InPrivate browsing. Integrating with your web browser, Flash Player 10.1 will automatically clear stored data in accordance with your browser’s private browsing settings. Prior to Flash Player 10.1, the player behaved the same whether the browser was in private browsing or not. Browsers could clear browser data temporarily stored during a private browsing session, such as cookies and history, but they were unaware of the data stored in Flash Player local storage (also known as local shared objects or LSOs). To keep your information safe, information in Flash Player local storage is stored on a site-by-site basis—so that one website can never see information from another website. However, storing information on a site-by-site basis can leave a history of previously visited sites that have used local storage.
Starting with Flash Player 10.1, Flash Player actively supports the browser’s private browsing mode, managing data in local storage so that it is consistent with private browsing. So when a private browsing session ends, Flash Player will automatically clear any corresponding data in local storage.
Additionally, Flash Player separates the local storage used in normal browsing from the local storage used during private browsing. So when you enter private browsing mode, sites that you previously visited will not be able to see information they saved on your computer during normal browsing. For example, if you saved your login and password in a web application powered by Flash during normal browsing, the site won’t remember that information when you visit the site under private browsing, keeping your identity private.
The Settings panel lets you change settings for a specific piece of content running in Flash Player (also known as a SWF file) or the site where that content came from.
Source : Adobe