Got the newest Google Earth 4 Beta here, and it works absolutely perfect on my system, especially now that overlays don't flicker anymore.
There's just one exception: When adding new overlays, the overlays receive a strange kind of border around the image, which seem like the colors at the edge of the image has been dragged out by a few pixels. When adjusting and positioning an overlay, this border is even outside the adjustment handles. Since the pixels cannot be dragged out in the corners, the corners have black squares in them. Pretty strange.
My hardware is a Dell 6400 laptop with an Intel dual core processor and an ATI x1400 256mb grapics accelerator. The bug is very annoying when trying to overlap several overlays, which now is impossible without noticing this weird border. Hope this is something that will be fixed in the next update

Edit: I'm even more puzzled to find out that the fuzzy borders around image overlays are not to be seen on an other computer with an old Ati radeon 32 mb card. However, on that computer the new updated Google Earth 4 Beta runs really slow with overlays on.