Adobe has confirmed that there will be no Adobe Flash support in Windows Mobile 7, at least at the initial launch. However, Microsoft and Adobe are working very closely together to add in support for Adobe Flash 10.1, shortly after the launch of Windows Mobile 7.
The quote published by Phone Scoop, and confirmed by an independent source, doesn’t mention Windows Mobile 7 directly: "Microsoft and Adobe are working closely together. While the newest version of Windows Phone won't support Flash at initial availability, both companies are working to include a browser plug-in for the full Flash player in future versions of Windows Phone. More details will be shared at Microsoft MIX next month."
All eyes will be on Steve Ballmer during at the Mobile World Congress for an announcement regarding Windows Mobile 7, and whether or not it will support Adobe Flash 10.1. Windows Mobile 6.5 currently supports Flash, unlike one of its biggest competitors, Apple's iPhone.
Adobe and Microsoft have yet to confirm the rumor, though Neowin will no doubt have a full confirmation soon, directly from the Mobile World Congress, which is being held from February 15 - 18.