Thought that I will add my $.02 to the already good information:
I have found that a homemade (or store bought) "tracing test lamp" is a 
surprisingly useful tool.  It is basically a single 12volt auto bulb 
with two wires soldered to it . The wires are about 6 to 12 inches long 
with alligator clips on the end.
For your case, you would clip to (1) the flasher wire at the bulb 
connector, and (2) to a good ground.  The troubleshooting becomes much 
more obvious depending on your results.  As someone already explained, 
if you have a high resistance path to the bulb (like a corroded bullet 
connector, for example), the voltmeter may read a relatively high 
voltage at the bulb connector "open circuit" (when the bulb is out); but 
would never be able to supply enough current.  If you are not familiar 
with troubleshooting electrical problems this can sometimes be confusing 
because "you've got the voltage there, why doesn't it work ?"
Good luck (aren't electrical problems fun ?)
-Roger
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