When I first saw this I thought “Where have you been all my life?” Then I realized the answer: In 1.x iPhone and iTouch firmware. iMobileCinema is a homebrew app for 1.1.1-1.1.5 firmware and must be installed on jailbroken phones. This tool is all but useless to early adopters who are already into the 2.x version of the firmware but a version that should work with 2.1 is coming soon, according to the website.
The program is actually a Safari plug-in that breaks Flash video out of the page much like the YouTube program. It’s not a true Flash interpreter but instead uses the same techniques that the YouTube app uses but on a wider range of videos. It’s available free for download for those who have considerably older phones, at least in tech years.