I have the same problem, Apple TV sees my PC but not my Ipad 1 (no icon). The Ipad doesn't pick up my TIVO box either. I guess it is in the software in the IPad The only reason I have the Apple TV is to push things from the Ipad to the Apple TV.
I have IOS 4.3.3 (both have been checked for software updates).
A fall iOS 5 release could mean Dec since winter does begin until Dec.
iPad Airplay icon missing. For some Routers like the Netgear you may need to specify all devices individually to have access to the wireless network. NETGEAR> Wireless Setings> Setup Access List> Add all devices and Turn Access Control ON, Apply and then Apply, You may need to have all devices reconnect to the network
I have the same problem (no Airplay icon on iPad2) but a different networking setup. I'm wondering if that could be causing a problem of if it's even supported.
I'm on Verizon FIOS so must use the Verizon Router. But to get house-wide wireless working, I have the wireless turned off on the Verizon Router and a centrally located Linksys router connected to the Verizon router. I have wireless access through the Linksys router and also wired access to my Mac and two AppleTV2s through the Linksys router as well. This all works fine. The ATVs see iTunes on the Mac and my iPad2 and iPod Touch have internet access wirelessly all through the Linksys router. I've also used the Remote application on the IPod Touch to control music play on iTunes.
Sofware on the iPad2 and both ATVs is current.
Since I don't show an Airplay icon on the iPad2, I'm wondering if Airplay even works if the AppleTVs are using a WIRED connection to the Mac running iTunes?
If Airplay does work in this environment, I'm wondering if there is some Linksys router settings (firewall? other?) that needs to be tweaked to let Airplay work?
Note that I'm not exactly a networking expert (or a compter expert either).
Any help/suggestions appreciated.