Thanks Epic. This pointed me in the right direction. I first tried what you suggested, but it didn't work. Then after messing around for a bit I FIXED it. If Epic's suggestion does not work for you, try the following. It did for me.
1) Make sure that the date and time in your iPad are correct.
2) Close all your running applications
3) Launch Safari
4) In the address bar, type the following :
http://www.netflix.com/clearcookies This should take you back to the netflix login page.
5) Close all active safari windows.
6) double click on the Home button, and stop all apps listed.
7) Power "Off" your iPad
8) Wait a minute or so, and power it back on
9) Launch Netflix app and Login.
10) Launch Safari, go to Netflix home page and login.
11) In the browser tap on a movie from your instant queue. This should open the Nexflix app and your movie should start.
I hope this work for you.