Site is not functioning after moving the site to localhost with admin_menu

Online site is working great.. i installed the site to localhost, and configured.. it works great.

When i tried to clear cache under performance section, site is breaking with the error:
Fatal error: Only variables can be passed by reference in modules\admin_menu\admin_menu.inc on line 536

This error is going away when i delete the admin_menu module from sites/all folder. Any idea why it is failing? Thanks,