Flash Makes It To the iPhone Using Cloud Browse App
While Tang's application does indeed let you watch Flash on your iPhone, it is not in Flash format--when you request a web page that contains Flash video, the application is grabbing the stream from an application server which streams the requested web page that contains video back to your iPhone.
You can download the free Cloud Browse App and install it on your iPhone. Then, using the app, you go to the website of your choice, and the Cloud Browse server streams it back to your iPhone. Cloud Browse works on most websites--with the notable exception of Hulu, which is very aggressive about blocking access, according to Tang.