I tried using FaceTime between my iPad 2 and my iPad 3. Each time, there's a continuous ringtone on the iPad that's initiating the FaceTime session, and the receiving iPad says "Connecting..." Then, after a minute or two, both iPads say "FaceTime failed." I alternated the sending and receiving roles between the two iPads and that did not make a difference. Then I tried FaceTime between the iPad 2 and my Macbook Pro. Everything worked nicely! I tried FaceTime between my iPad 3 and my MBP: nope. Same error. Then I tried it between my iPad 3 and my iPhone 4s: nope. Same error. What? This is strange! Does anyone else have issues with FaceTime on your new iPad 3rd gen? Anything I can do?