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i don't have the kit yet, it's on order.
from what i read. you can put movies onto a sd card as well as pictures. you can import both pictures and movies into the ipad, they will all show up in the photos application. you can play videos from there, and delete them when you're done. or sync them back to your desktop. this was made with those small camcorders in mind, but the ipad doesn't know one video from the next.
so you could, if you needed more movies than you could fit on your ipad, load up a few SD cards. go off on your vacation. load them in (one by one, or en masse) off SD cards into your ipad. watch them. then delete them. along with vacation photos, etc. you can't export any content out to a SD cards, apple forbids this, at least for now.
personally, i think the video player on the ipad is pretty poor, especially compared to the music player. it's obvious which of the two saw more love. even ibooks has more sorting, searching and navigation abilities. hopefully this will be addressed in the future.
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