Always a popular session wherever he takes it, Jim Corbett's Flash Player Internals gives developers the ultimate in nerd level access into how the guts of the Flash Player work. What's amazing is Jim's ability to describe some really low level stuff in a way that anyone with even rudimentary scripting knowledge has at least some idea of what he's talking about. Matthew Fabb sat in on Jim's session, which has been updated to include discussion of the changes for mobile in 10.1, at FITC Toronto 2010.
Corbett also explained in detail how Flash handles running out of memory on smaller devices, especially when there’s multiple instances of Flash and instances need to be shut down to save memory. If memory is low, new instances of the Flash files will not start up and need to be clicked on by the user to be then activated. He mentioned that Adobe was working on giving developers a chance to load in an image in place of the SWF, until the users clicked on it. Not sure if this last feature is coming with the initial release of the mobile Flash Player 10.1 or in later updates.