In the following video you will see Adrian Ludwig, a developer in the Adobe Flash-Team, who shows off Flash 10.1 on the Nexus One. He shows for instance some well known Miniclip-games and online-videos.
What is interesting is that Adobe engineering is closely working together with Google, HTC and Qualcomm (who are all members of the Open Screen Project) to optimally integrate Flash content with the Sapdragon chipset and the Android OS. The Flash-player still needs some development but should be available during the first half of 2010 on Android 2.x phones.
