My consensus from this http://www.adobe.com/products/flashlite/ is that until they (Macromedia/Adobe) upgrade the underlying technology for all lite versions, we won't see any improvement hitting the 770. Typically smaller in any industry comes at a price in both time/energy and cost. Think of the market- why put the latest version into every mobile device licensed for it only to find there are bugs and holes in it? This wouldn't make for good vendor relationships, hence they pump out a stable, tweaked, and proven version.

When Flash 9 hits the desktop en masse, maybe we'll see compatibility for Flash 8 on smaller/mobile devices such as the 770. Sadly that may be awhile, but we can always hope...

~Dave