Adobe announced at its AdobeMax conference on Monday, October 5 that it will add support to its Flash Professional CS5 developer kit to convert software written in Flash to standalone iPhone apps.
Earlier in the day they announced that Flash 10.1 would be available on just about every single mobile hardware platform out there. Blackberries, Android phones, Symbian Phones, Palm Pres and Windows Mobile.

Announcement
WIRED Announcement
ComputerWorld Article

Example Flash apps that made it through the iPhone conversion process (8 so far)

Flash apps WIRED would like to see on the iPhone