If you have a PDF document embedded in a web page, the iPhone won't let you look through it with one finger scrolling. However, if you start using two-finger scrolling on the document, you can scroll around it like any other web page. The pinch/expand gesture also works to zoom in or out on the PDF.
The iPhone will load it pretty slowly, but it'll get there eventually.
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Mac OS X Hints
http://hints.macworld.com/article.php?story=200809111619176