At the risk of getting sucked into the Apple vs Adobe shitstorm, my own response to Apple chosing to block Flash content from their mobile devices is to at least tell users why – because Apple left it at the rather obscure blue lego block, with no explanation (great experiential design guys). Simply include this code in your page/s to redirect mobile safari users to a page of your chosing …I direct them here.
I’ve seen a few people get into a pickle over this one. When you’re developing and testing locally, you need to set the ‘Local Playback Security’ setting (sometimes referred to as the ‘use network services’ option) depending on whether you wish to access local external files (e.g. XML files, or images) or some other server (e.g. your dev backend server). You can’t access both from a locally running SWF anymore, since it’s a security risk. So here’s how to set that option in Flash CS3 / CS4 or from within FlashDevelop.