Finally Got it!!! Ok, here is what i did: it was a combination of two things i read in different forums.
1st: Go to System Preferences>Security and Privacy and in the "allow apps downloaded from: " section, select "Anywhere". There is a file in the installation bundle from adobe that is not recognized as coming from an "identified developer". I then went back to the adobe page and re downloaded most recent flash player. Tried to reinstall it, and again the same problem as before. Stopped at 50% asking to close Safari. So i did the following:
2nd: This time instead of closing Safari by pressing the red button X, I pulled down the safari tab and clicked on exit safari command. Clicked the retry button on the installation window and magic!!!! it worked.
Finally after 5 frustrating hours it worked.... I never thought i would run in to such a problem with a brand new Mac.... with the money i paid for it, would expect much easier performance in the upgrading process.... and compatibility with adobe.... an issue that should have been resolved long ago. I guess its a problem on both sides.... some clearer instructions for upgrade would be greatly appreciated.
You will want to go back to system prefs and undo the "Allow anywhere". Two reasons.
1. It protects you from maliscious code and potentially dangerous files in the form of installers.
2. If you have a software related problem that requires Apple service and they discover it set to "allow anywhere" they can and will refuse the service under warranty and you'll pay for any work they do.