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The iTransmogrify bookmark let for the iPhone or ipod touch converts embedded Flash content to mobile Safari-supported formats so that Flash media—like embedded You Tube videos and streaming MP3s—will play from Safari with the click of a bookmark.
 
If you do plan on jail breaking, I use "Frash" to view Flash videos. Download it from Cydia and it becomes embedded in the system which allows you to view all Flash items. It does not consume additional battery either! If you choose to jailbreak, this is a must have package from Cydia.

how well does Frash work??
 
I used frash on my ipad when it came out and removed it a week later. I wasn't happy with it at all.

Skyfire isn't the best solution but it's better than frash was. Emphasis on was. Maybe it's been improved since its first release but it was painful to use.
 
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