I have the answer for you. I had the same problem when I went to 7. What you do is this. You need to uninstall the Wacom Driver. This will not stop you from using your Wacom mouse or pen..it will just slow it down. On your computer go to the Control Panel. Then to Programs then to Programs and Features. Look for the Wacom icon and double click on it. It will prompt you to uninstall the driver..say yes. Then restart your computer. Once restarted go to www.wacom.com and go to America English..then to the Downloads page. Click on Hardware Drivers. Down load driver # 6.1.2 ..which comes up automatically. Once downloaded you will be prompted to run it...do this and follow the prompts. Once done your mouse and pen will be back to normal and you will see what you are drawing with the pencil tool.
If you have any doubts..go to the Wacom.com site and ask their support people. This is what I did and it works. Good luck.
Thanks for the help Kate i really appreciate it, so i took your advice and i downloaded the driver according to the wacom tablet i have which is the "bamboo MTE 450a" for the windows 7 (driver 5.2.1-6). I started up flash and it still doesn't work. thanks again for the help i will keep trying and if all esle fails i will go back to vista.