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Question, is there a way to put avi files into iTunes? So home sharing on the iPad can play the movies?
 
AirVideo app will convert most videos on-the-fly and stream them to your iPad. You need to run the AirVideo server program on your computer.

AirVideo also has a decent an fairly hassle free protocol for converting files. After they're converted, you can add the converted files to iTunes and add the appropriate meta data to them. If you're dealing with TV shows, though, I'd recommend applying the TV Show tag to them before adding them to iTunes. iTunes can be a little wiggy about getting that particular tag applied properly.

Also, while home sharing is nice, I've found that it's not as great as I had hoped it would be. If I watch half of a TV show on my iPad, then go away and come back later to watch the rest, it won't remember where I left off and I have to scan to find the approximate right spot. This is something that AirVideo actually does much better. However, I'm hopeful that home sharing is going to improve with subsequent updates...
 
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