Letting the cat out of the bag one day early, Adobe has released a statement confirming that Windows Mobile 7 will not initially support Flash in the browser, but they are working together with Microsoft to make this possible later:
Microsoft and Adobe are working closely together. While the newest version of Windows Phone won’t support Flash at initial availability, both companies are working to include a browser plug-in for the full Flash player in future versions of Windows Phone. More details will be shared at Microsoft MIX next month.
This also confirms leaks we have heard earlier that say much the same, but given that Windows Mobile 7 is not fully cooked yet, it is quite understandable. Hopefully this will not have any effect on Flash 10.1 on Windows Mobile 6.5.
Read more at Phonescoop here.