Flash Lite 2.x supports only device video, which means it relies on the device to decode and render video. It is limited by the video formats supported by a specific device, can't synchronize the video with the timeline, can't control the volume of the video clip, and can't rotate, skew, composite, or blend the device video with other media. (The video is always on top of any other Flash content.)

Flash Lite 3.0 adds support for Flash Video (FLV) using versions of the On2 and Sorenson codecs optimized for mobile devices. FLV video is rendered directly in the Flash Lite player rather than by the device, so you no longer need to be concerned about whether your target devices support a particular video format if you are targeting devices that support FLV. Some device manufacturers may choose to continue to support device video instead of FLV if they have already implemented an efficient video playback mechanism.