• New security features — Adobe's Real Time Messaging Protocol (RTMP) will be enhanced with new, higher performance encryption to help secure streamed media and communication. This enhanced protocol is called RTMPE. Similar in strength to our current SSL protocol (RTMPS), this enhancement can be leveraged by content owners and communication developers to add additional protection to their content. Additionally, SWF verification will also help protect SWF files from being reused, modified, or hosted in alternate locations. Flash Media Server 3 will also support streaming of encrypted content to Adobe Media Player.

Ripped directly from the Flash Media Server 3 FAQ: HERE

I guess big label content providers have been asking for this.

Also "Adobe Flash Media Server 3 will support streaming of industry-standard H.264 and HE-AAC video and audio content to Flash Player, Adobe AIR™, and Adobe Media Player." and there is a bit about streaming video to Flash Player Lite but no mention of the phones Camera sending video back up