Blip.tv allows its users to create a custom show player for embedding an iPhone-compatible video into their site. This screencast by Justin Day from Blip.tv explains how to set up the player and how to get the correct embed code once you have the player set up. You can see it in action on your iPhone here.
Note you would not do this if using the vPIP plugin, but rather instead of using vPIP.
Heath recently started a discussion in our forums on whether we really need to publish multiple video formats now that Flash can play mp4 files. Several people are thinking along the same lines, and some have dropped the vPIP plugin in favor of the Blip.tv Show Player. Right on cue, Blip.tv announced that you can now create a Show Player that will work on the iPhone. And Mashable reports this means Blip.tv ads will now be viewable on the iPhone, which expands producers’ revenue opportunities. We’ve got the how-to for you right here.