yes, now you can create apps using Flash CS5 with the Packager for iPhone kit. This essentially creates an AIR application which can run on iOS. These applications can be distributed, installed, and run just like other iPhone applications(iPhone, iPod touch and iPad).
You can get more details at http://labs.adobe.com/technologies/packagerforiphone/
You can review the developer guide at http://download.macromedia.com/pub/labs/packagerforiphone/packagerforiphone_devguide.pdf
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