Can I take a Flex application (currently running on the server),
and easily convert it to a phone app?  It is a self contained (no data
access or any external connection).
  No, you can't. The mobile application is been designed and architect in a 
different way. It uses light weight component and the navigation is also 
different. 

I believe it requires 4.5.  We currently have 4.0.  Is
the upgrade included in the product?  We (State of Illinois/DHS) currently
have a contract with Adobe for our LC and Flex programs.  I can provide
the info on this if you need it.
I think you have to pay extra for the update licence. Check the Adobe site for 
the same. But get the Adobe Flash 4.5.1 which supports iOS and Blackberry too.

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