iPads are quite notorious for having wireless issues, maybe this will be resolved with a future software upgrade for the iPad.
The symptoms I experienced are as follows. After clicking on play the Netflix app would say “Preparing to view….” and the bottom half of the screen was blank cutting off part of the movie cover graphic. Then the app would return to the movie browsing page without starting the movie.
To fix this issue go into the iPad settings menu for your WiFi network and change the DNS entry to 126.96.36.199
Return to Netflix and the problem should be resolved.
The reason for the problem is that if your router utilizes DNSMasq the iPad/Netflix app misbehaves. By entering a manual DNS server address for OpenDNS service the iPad bypasses your routers DNS Cache which it is incompatible with.
In my case I use DD-WRT software in my router which by default utilizes DNSMasq to speed up your DNS queries. The problem could also be resolved by disabling DNSMasq on the router. Alternatively one could enter 188.8.131.52 into the DNS entry on the iPad wirelsss settings which would use Googles DNS service. Personally I prefer OpenDNS due to its richer feature set.