It seems to work by playing a Quicktime version of your clips, thus getting around the whole lack of flash support. The folks at Flickr note that the iPod touch and iPhone are the only mobile devices that can play the movies for now, but others will be added soon.
Other improvements to m.flickr.com include the option to comment on photos and add them to your collection of favorites. I found the site to be very fast indeed over WiFi and no slouch over EDGE, either. Those of you with later model iPhones (and iPod touches) will have to tell me how your experiences have been.
Thank you to Flickr and the Yahoo! Video Platform group. Now if only some others would follow suit (we're looking at you, Hulu).
[Via Daring Fireball]