Hi,
the new version of MPlayer for iPhone was released. Now it is possible to watch streaming TV directly on the iPhone!
Try this guide:
http://en.vimjak.cz/iphone/how-to-watch-tv-on-the-iphone

Tried it and can't get anything to play.

I do not get the "Start Play" option

All I get is the SS shown in my attachment.

eh figured out my own issue. Helps to read a bit better

Latest version of MPlayer in Cydia can't play TV streams from the internet! It is not good idea to upgrade on this version. If you have upgraded or installed the latest MPlayer from Cydia, follow the tutorial How to watch TV after installing the latest Mplayer?

Didn't see I had to unpack to older version to get this to work.

It is working but very choppy from everything I have tried so far and this is wifi at home. Cool that it can do this but prob won't use it unless I find some better streams.