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I know that it is the Flash Player version causing this because after upgrading the Flash Player for someone having this problem it worked. I don't think this person had a very old version though - I'm betting it was at least version 11.0. It would be nice if the user was guided to upgrade the Flash Player instead of showing this incorrect message. (To be clear though, I love the new quiz feature in Camtasia 8 I'm just disappointed that it might be a support headache if I choose to use this feature with users who may not be up-to-date on their Flash upgrades).
To clarify, I published this using the "default MP4 with video player (up to 480p)" setting. I can supply a URL privately if someone at TechSmith would like to look at it.