Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.
What version of iOS are you on? Netflix works fine for me on 4.2.1 but when we were in beta for 4.0, it was broken for months. They've since fixed it though. I haven't used Airplay however, but maybe someone will poke their head in and offer their 0.02. :)
 
What type of Netflix subscription do you have?

I have an old el-cheapo $5/month subscription that gives me 2 DVDs a month. Plus, it includes unlimited streaming. BUT! A couple months ago, netflix changed the terms on this plan so that I can't stream from devices like the iPad. !#$@#@!!! They no longer offer this $5/month plan; so I have a choice - keep with it, or "upgrade" to some other plan that lets me stream. I'm not sure what I want to do.

Anyway, if I try to run the netflix app on the iPad, it just crashes, and I can't even see the error message clearly (flashes for about a half-second).
 
Any ideas? I have remote also downloaded to my iPad. Could this interfere. YouTube works in Airplay.

As far as I know, no 3rd party apps are working with video AirPlay yet. For me, Netflix was able to send sound but no picture to the AppleTV. Why do you need to do this? Can't you just connect to Netflix directly from the AppleTV?
 
Register on MacRumors! This sidebar will go away, and you'll see fewer ads.