With just a few clicks you can easily convert flash video to iPhone optimized video using Freeway.
This tool will do the conversion for you on the fly, gives you the choice between Edge and/or WiFi-3G versions, and even generates the poster board for you.
You start by either purchasing Freeway, or download a free trial first. The software is Mac only, and is a very popular WYSIWYG for web designers.
Step 1: After you’ve got Freeway up and running, open a page and embed a flash movie. Do this by choosing the actions menu, then FLV player.
Step 2: With the FLV player object selected, choose Window>Actions from the file menu.
Step 3: Choose your flash video file to embed, then select the iPhone compatibility checkbox.
Step 4: At this point you have the option to generate either .m4v (for WiFi and 3G networks) or .3GP for the slightly slower Edge network. You can also generate both!
Step 5: The last step is choosing the poster frame. By default the poster frame select is set to Automatic. Change this to select and go to the same folder where your newly generated video is stored. Select the png that was generated for the video.
Now all that’s left is to test it in a mobile safari browser. Either use your iPhone/iPod touch, or use one of the other methods mentioned here and here.