Do you transfer the video as follows...
Drag and drop from the folder holding the video, to the ipad (in itunes).
This is from a post by another member-->"creating H264, it should work. When I drag them to the ipad (in itunes), it automatically puts it into the video area. You can also create a folder in itunes, then drop your ipad compatible videos into it, then
drag, and drop them, to the ipad, from there. They have to be in a compatible format, is all. I'm limiting the bitrate (around 1600), and converting to stereo audio, and creating videos in a 1024 x Y format (depending on the letterbox), but of course, no point to the 1024, if you are talking about DVD, or lesser video rez. I'm creating about 1.5 gb files, for 2 hour movies, or thereabouts (likely overkill, but looks very nice) ... which is information beyond the original question. BTW, I do rename my files to .m4v"