I'm new to ATV, found an ATV3 open box at bestbuy for $89.99 and had a $50 gift card, so decided to grab it.
Netflix works perfectly, and looks better then it did on my 360...However the iPad/iPhone mirror feature is why I got the ATV over a Roku or another similar product, which for me is an absolute let down. Lags terribly when paired with my iPad 3rd gen. Can hardly handle streaming music / video. Browsing the web works ok though. Any suggestions?
Try getting the new 5.1.1 update. Has bug fixes for AirPlay. Personally I have no issues with AirPlay between my Atv 2 and iPad 2.