The relationship skill is the main key to defeating the nightmare. When you do, your skills will not reset that night. Regen is also very helpful, it can be learned from Mama Roundite. Also, the only skill that shouldn't be maxed when you get to the computer is knowledge.
Though it has been stated otherwise, the crash does not appear to be related to Flash version. I'm running Flash 10.1, it crashes in Opera 10.61 but works in IE 8.
 "Level Up!"){kind=icon}
 "Microbe Kombat"){kind=icon}