Frash, the unofficial Flash-on-iOS project, has successfully been ported to the iPhone and iPod Touch. Previously, it was only available for the iPad. Frash was created by comex, the Dev-Team member responsible for the latest jailbreak.
The current build is still in its infancy, but it’s safe to say that it works much better than Apple’s nonexistent implementation. The installation process is simple, and only requires you to copy a single file over to your jailbroken device using SSH.
Hit the source for the full instructions, and let us know how it works!