Flickr has spiffed up their mobile page see m.Flickr.com including video playback!
The new flickr mobile url is worth adding to the iPhone desktop icons.
I was eager to see some of my videos, but missed the fine print that it only affects videos uploaded since this new feature was added. I went back to my last video, but unlike photos, there is no option to “replace this video”.
It looks like, viewing a few of the videos I found under the More … Explore videos link, that they are cross encoding video to QuickTime format to make them playable on the iPhone/iPod Touch (thou shalt not have flash video for now).
You can see it pass the view to a range of static IP address servers such as 126.96.36.199 which resolve as Yahoo addresses.
I am not worried about what you can or cannot do with video right now; it is all just started to sample what tools we will have in the next year.