Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.
Wait. You can convert movies with air video and watch offline? How do I do this?

Press 'convert' in the app instead of 'watch with live conversion'. On the computer the original file is stored on an mp4 file will be created in the same folder. You can then sync this to your iPad for offline use.
 
Register on MacRumors! This sidebar will go away, and you'll see fewer ads.