Again how? My MBA will not run 720/1080p smoothly no matter what i do, it's annoying!
You're running it inside of a browser then. If you run it outside of a browser, it does the job just fine. The problem isn't Adobe's when it comes to Flash either. Apple has withheld access to the APIs for h.264 hardware acceleration. With the newest Flash 10.1 builds, it's much better. In addition, all HD playback apps should be updated as Apple finally opened up h.264 API access a month or so ago.
Also, it's assuming you have a v 2,1 MBA. The Intel GMA isn't going to use h.264 nor OpenGL and provide a superior experience. BTW, what display are you sending your 1080p signal to?
Anyone that wants to blame Adobe needs to install Windows 7 on their MBA and see just how liable Adobe is. The MBA's hardware is PERFECTLY capable if OS X is taken out of the equation. Microsoft has given Windows users by far the best graphics system advancements, drivers, and OpenGL. Windows proves that HD isn't a problem and neither is Adobe's Flash as either run absolutely perfectly on my MBA in Windows 7. People need to put the blame where it's due, on Apple for not wanting it's users to have an incredible experience and blocking access to hardware that would provide a better user experience for OS X users.