Same problem here at first... working fine, then refresh and boom... I get the "In order to use Pandora, we request that you upgrade Adobe's Flash Player."
I used the Flash Switcher plugin, and tried it on Flash 9. Loaded fine, but (as always) with Flash 9, hung up on the fetching ID.
Ok. So I switched back to Flash 8, and loaded regular Pandora in one tab (just www.pandora.com). Then, in another tab, I loaded the http://localhost.
Still got the "we request that you upgrade Adobe's Flash Player" in the http://localhost tab, but with regular Pandora running in another tab (www.pandora.com), the http://localhost tab started tagging and ripping the songs!
Works like a charm. Just load regular Pandora in one tab, your localhost in another tab, and you should be in business.
I wonder if this is an attempt by Pandora to discourage the Jar?
Matt
P.S. Great work on this guys! I LOVE THIS APP!