You can now download VLC for the iPad so you should be able to watch more video formats than the standard iPad video player will support. Unfortunately you still have to connect up the iPad to iTunes to copy files over but you should be able to play WMV,FLAC and Divx files.  I tested WTV and DVR-MS and while it would let me copy the files over they did not show up on the iPad so it looks like there is still some transcoding needed.  Apparently it does not use the iPad hardware acceleration so HD content may not play to smoothly but I tired a WTV file converted to MP4 via MCEBuddy and that played back fine (as it does via the native video app)

So its a good start but it needs to support streaming, direct downloading and Media Center TV files for it to be really useful to me