Yeah, well, welcome to the biggest shortcoming of the iPhone, IMO: no Flash.
There are many videos on youtube which have been converted to h.264 (these are mostly newer videos), but there is still a ton which are in Flash, and thus not viewable.
I hope with the impending release of the Flash 10 Beta for the other mobile platforms, Apple will see the light, but I am not holding my breath.
The lack of Flash capability is my only regret in purchasing an iPhone.
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