Yes. You are right. I'm one of the victim who bought the Latest Apple Ditigal AV adapter. It only work with IOS 5 and above. But since my IPad 1 is working perfectly on ios 4.3.3, but not on ios 5, hence i bought the 3rd party digital av, which work well on ios 4.3.3 and above... Tested working fine...

But then i've sold my ipad 1 recently, hence i have this adapter extra, if you interested, i can sell cheap cheap for you..

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Added on June 29, 2012, 11:43 am

Ya. initially i also think of buying this, but the problem is i seldom project the pps, pptv or movie to tv. Apple TV need an extra power somemore, hence i just opt for this 3rd party adapter which can get around rm80. just plug in and play, cheap and easy setup..

Ya.. If you have Apple TV, it has the advantage of wireless. But for certain application which does not support TV out, you can't get full screen by using Apple TV. But if you use Digital AV Adapter, you can set the display ratio to full screen by using DisplayOut from Cydia.

Following is my setup to use iPad for video playing/streaming..

RushPlayer+ from cydia - The best RMVB/MKV Player for IOS . No lagging for 720p/1080p RMVB/MKV video playing. More user friendly User interface than XBMC and RMVB playing is the best in class, MKV playing same as XBMC as it utilizing the native hardware decoding.. That's why it is better than RushPlayer in Appstore.

QVOD for IOS - Use QVOD to download movie online (not playing) and use RushPlayer+ to play it. It will be realtime streaming if you have fast internet access.

DisplayOut from Cydia - To set the mirroing display ratio to full screen.

Digital AV Cable (HDMI) - To output the video to TV via HDMI.

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Added on June 30, 2012, 1:21 pm

I'm not sure about the 3rd party RCA adapter. But for my 3rd party HDMI adapter, it works well with IOS 4.3.3, IOS 5.01, IOS 5.1.1. Tested working fine, and the quality and features are the same as the Original Apple Digital AV adatper.. but the price is cheaper..

haha.. actually it wont have any problem if you know how to do it.. it provides you the flexibility. i dont like pps and pptv although it provides the easiest way to look for movies and stream it online, as it doesnt have up to date movies... however, you can get almost any movies with qvod... 

Based on my experience, Airplay and other similiar video players that you can find on the AppStore are able to play mp4 and avi up to 1080p smoothly and lag free, but not mkv or rmvb.

What is the MKV video resolution, is it 720p or 1080p? I tried many video player included AirPlayer before, non of them can play 1080p mkv smoothly and lag free. The only lag free and smooth mkv video player for ios is XBMC which is utilizing the private hardware decoder api, that is why Apple dont allow it to be published in AppStore. So does the RushPlayer+. Please try it and you will know how smooth and lag free it is....

In summay, from my experience, XBMC is the best player for MKV and RushPlayer+ is the best for RMVB. Just to share my 2 cents info...