Look, it's pretty clear that Windows Mobile 7 will be revealed by Microsoft at Mobile World Congress. We've been feeding on a veritable feast of WinMo7 rumors for several months now all pointing to Steve Ballmer's keynote scheduled for 3PM Barcelona time (9AM in New York). Now Adobe has issued a statement apparently confirming what we've already heard: Windows Mobile 7 will not support Flash. Unfortunately, the actual quote carried by Phone Scoop doesn't mention Windows Phone 7:
"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."
Of course, the "newest version of Windows Phone" is technically 6.5.3 -- a WinMo update recently announced (but hasn't shipped) and presumably still works with Flash 10.1 beta (but isn't guaranteed). And since we can't find the Adobe statement on any of its usual press channels, we can't say for sure this quote is related to Windows Mobile 7. Still, we don't doubt the accuracy of Phone Scoop so don't get your hopes up for Flash in the initial builds of Windows Mobile 7 Windows Phone 7 Series devices.

Update: Sorry kids, we have independent confirmation: Windows Phone 7 will not support Flash at initial launch.

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Adobe confirms no Flash in Windows Mobile 7 (updated)