UPDATE: Jon Favreau confirms that not only WILL there by flying in the movie, but the scenes shown in the recently released trailer will be in the film as well.
Here's is Jon's reply to the question of whether Iron Man will fly in the movie:
"[The flying scenes from the trailer are] in the movie. It's true that the shots were rushed for Comic Con, but the F-22 dogfight has been in the works for over a year and was the furthest along of the film's set pieces. That's how we were able to get it on the screen nearly a year before the premiere."
Variety just put out a story stating that the extremely cool Iron Man/jet flight scenes shown in the trailer will NOT be in the movie:
"A spokesman for Industrial Light & Magic confirms that the flying Iron Man shots are not 'finals' (completed, delivered visual effects) and were only made for the film's Comic-Con promo reel."
The problem with their headline is that it states:
Paramount grounds 'Iron Man'
Superhero flies in trailer but won't in film
I think the guy is drawing a completely incorrect conclusion, and is assuming that because that scene won't be in the film that Iron Man won't fly in the film at all. How he gets from:
"the flying Iron Man shots... were only made for the film's Comic-Con promo reel"
"Superhero... won't [fly] in film"
is beyond me.
If it's true that there won't be any flying by Iron Man in the film, that'll be a HUGE mistake IMHO - probably the first one I've heard of related to this movie, and for it to be such a whopper leads me to believe that the writer may not have his facts straight.