1.Installed flashlite 3.1 from here:
http://android.modaco.com/content/zte-blade-blade-modaco-com/323295/flashlite-working-with-stock-android-2-1/
Following the instructions on there...
You will need to root your phone so you can copy the library files (*.so) to the /system/lib/ directory.
Then install the FlashPlugin.apk and reboot your phone.
2.Installed xScope browser from here:
http://x-labs.net/?page_id=18
3.Created a Flash 8 compatible bit of flash and placed it here:
http://www.amazing-int.com/tmp/edubanner.html
4.Using xScope browsed to the above url et voilá...flash is playing in the browser!
Downside is flash lite 3.1 only works with flash upto v8 and flv based stuff... Haven't tested it with other browsers...yet