HI Mike
So the students assignment submission for video works, but the teachers feedback doesn't. And that you think it might be the flash permissions for the webcam/microphone.
I have not heard of that specific problem, but there are a few things you might check. Does it work from a different browser? And if you are using Chrome, did you see the little popup permissions dialog that Chrome requires for webcam access? If you didn't see it, and it is very easy to miss, that might be the problem. It shows just below the address bar of your browser.
Also is the little connection lamp on the lower left of the recorder green? If not you won't be able to record until a connection to the recording server is made.
Do other PoodLL feedback types work, eg mp3 recording or whiteboard?
I made a lot of changes "under the hood" recently. So it is possible I missed something in the PoodLL Feedback mod, so please let me know how you get on.