The first homebrew Flash player has been released by 71M, the current version supports most action script through version 7 and runs on 1.5 only. We are currently testing for 2.x PSPs and will announce when it is working on 2.x Firmware. If someone gets it working, be sure to let us know. Source will be released in a couple of days once we get it all cleaned up. It is still a little bit buggy on flash files which use MP3 sound. PCM sound is fully supported. MP3 decoding just eats up too much memory right now when decoding the mp3 stream to a raw sound stream so we ask for your paitence.
Also, loading times are being worked on. Basically everything needs to be converted and cached in memory (of which there is not alot available) and this takes a little while. Consider the current release a "proof of concept" release. Fully functional (smooth video) with a few glitches. When we release the source, we're hoping to get a few more developers involved with code cleanup and bug fixes.
We will be publishing some sample SWF files and full specs so people can start converting their flash files over to something a little more PSP compatable.
Decompress the downloaded file to your x:\PSP\GAME folder. Flash files can be placed anywhere on your MS. Use the included file browser to locate the flash file you want to view, highlight it, and hit X to play it. That's it!