Unless you've been living under a rock for the last few days, you'll have heard about the "Moviestar" Flash Player update Adobe is releasing in beta on labs.adobe.com. I'm really excited to see them embrace the H.264 codec, which has essentially become the industry standard and enables delivery of HD quality video. I've had my sneaky suspicion something like this was in the works looking at features like hardware acceleration, full screen functionality etc. that were getting added in previous Flash Player updates. Now you can use the normal NetStream approach to progressively download .mp4,.m4v,.m4a,.mov and .3gp files as well as regular FLV files obviously.
Tinic Uro has a great blog post covering all the technical details: http://www.kaourantin.net/2007/08/what-just-happened-to-video-on-web_20.html
There's no doubt in my mind that Flash remains to be the best medium to deliver video to the web, look forward to seeing Flash Media Server support the new codec -- I'm sure we'll see some great high quality video experiences popping up.