Attempting to play iTunes movies from Local Content (on my iPad), I get the following message:
"Mobile Safari
Mobile Safari was unable to open the file containing DRM content. Authorize your iOS device with your iTunes account and try again."
Going back to streaming the movie from Folder View, I get the same message--until I delete the movie from Local Content; then it plays as usual.
I know nothing about authorizing an iOS device with an iTunes account. In the "Getting Started" video, the woman says to "authorize the iPad." Stopping the video, however, shows that she's only using the "Authorize This Computer" function. So, playing along and looking for a fix, I tried to "Authorize This Computer" which just resulted in the message that the computer is already authorized.
I have a 2nd iTunes library (shift + iTunes method) for my iPad. It contains only one short film, but I always sync with this library after buying a new movie (bought through my regular iTunes library). Somehow, the iPad gets the needed DRM keys. I don't see why movies played from Local Content would fail because of DRM.
BTW, this is after today's app upgrade to 1.1.0.74--if that matters.