"the trains take one hour to collide (their relative speed is 100 km/h and they are 100 km apart initially). Since the fly is traveling at 75 km/h and flies continuously until it is squashed (which it is to be supposed occurs a split second before the two oncoming trains squash one another), it must therefore travel 75 km in the hour's time."
So if von Neumann was solving it by explicitly summing the series, as the anecdote claims, then he was doing it wrong :)