As previously covered, a lot of mobile browsers (especially iPhones) and all the new iPads will not support Flash.
So what's a website designer to do?
For a long time this has been a very minor issue as 98% of all computers do support Flash.
And there is no better technology for videos and motion effects - including slide shows and a lot of navigation menus.
Now it is of concern because more and more people are using iPhones and iPads to surf the Internet. With some websites this is a very significant portion of their site traffic.
The answer is for the website to detect when a browser does not handle Flash, and serve up a still picture in its place. "Hotspots" can handle links including menus, but not dropdown menus, so that requires text links or a different strategy to get to other interior pages.
That is a workable solution until such time as Steve Jobs changes his mind.
Here at Fast Forward we are now making this routine with all new websites