Flash is primarily 2D software, although with the dawn of Papervision, Alternativa3D, Away3D etc this has provided some 3D capabilities. However without using hardware acceleration people have been really pushing the limits of what is capable.
“Molehill” is the code name for a new set of low-level, GPU-accelerated 3D APIs that will enable advanced 3D experiences across screens through the Adobe® Flash® Platform runtimes. In using the GPU it means that the CPU useage is as little as 0%, rendering realtime 3D graphics with environment mapping and reflections. Using the new 3D APIs in Flash Player and AIR will make it possible to deliver sophisticated 3D experiences across almost every computer and device connected to the Internet.
Developers will be able to build their own engine or use existing engines on top of the Molehill API. Adobe produced this example in conjunction with Alternativa3D for Adobe MAX.