Does the iPhone support Flash?
No. The iPhone does not support flash.
Apple has been clear, up until this point, that they do not intend to support Flash on the iPhone. Adobe announced its own plans to support Flash on the iPhone when the iPhone SDK was released, but was forced to repeal their own comments when they discovered the SDK did not provide enough access to the iPhone OS "innards" to provide such support.
Future generations of the iPhone may support Flash, but for now, the answer is no.