Ok, I understand the idea of importing a movie on your laptop/desktop to convert it so your iPad can read the movie. But honestly why would you want to go through all of this trouble? I [perhaps my fault] honestly thought iMovie for iPad would be a simple light video editor.
I bought the camera connection kit for my wife along with her iPad 2 and like a lot of other people, the video shows up in camera roll, but iMovie will not see it. Nor do I want to send it to my PowerMac G5 or MacBook Pro just to convert it when I have iMovie on both of those machines.
Should be able, like others have said, to import your camera movies, have iMovie recognize the movies and then light edit the movie and either email them, facebook or youtube with having to convert on a laptop\desktop and then back to the iPad. Hopefully Apple will address this in the near future. Otherwise, right now, I feel the camera connection kit and iMovie really was a waste of money.