yeah, from what everyone testing it has said, at launch there will be no Flash, but it can and will be added at a later date with a firmware update. and i would assume it would be fairly quick. i know and i think Zune knows it is a big selling point and they would want to include it in their product.
i also havn't heard anything about silverlight (MS version of Flash) i saw one person say that wasn't available...but i havnt seen any videos talking about it not being available so who really knows. maybe flash will be something they are hiding from us until a couple days before the launch.....i hope