Okay, I didn't want to start a new Netflix app thread, but just wanted to post my findings.
For me, I'm on Liberty Gingerbread v0.5 and I installed the Netflix app (unfortunately, I don't remember where I downloaded it). I originally had to do the build.prop edit to make it work and it worked awesome (although I lost swype).
I then read about jrummy's Netflix fix and downloaded it via his twitter link. I reverted back to my original build.prop file and flashed jrummy's Netflix fix. Worked awesome and got Swype back.
Now, to provide additional information as I've been hearing a few different things...I have a friend that has the following and the Netflix app works great on her phone:
Phone: Droid X
ROM: Stock Froyo (v2.2.1), only rooted, nothing else (she just wanted the 3G hack to work)
Adobe Flash version: 10.1.95.2 (NOT running the updated 10.3)
Netflix app used: the one from xda (netflix-devicecheck-disabled.apk)
So, the point of this was...
My understanding was that Netflix should only work on GB. Apparently not true.
My understanding was that we needed to be on Flash Player 10.3. Apparently not true.
Right now, it works if you are only rooted (maybe this is already understood, I don't know).
I'm going to check to see if the xda devicecheck.disabled version works on a bone stock Droid X, non-rooted. I'll post again what I find.
UPDATE: I passed the netflix-devicecheck-disabled.apk version (again from xda) along to my friend and it worked perfectly for him out of the gate. Check out his infomration:
Phone: Droid X
ROM: Stock Froyo (v2.2.1), not even rooted
Adobe Flash version: Adobe flash NOT installed
Netflix app used: the one from xda (netflix-devicecheck-disabled.apk)
So, according to this, using the xda Netflix version, you can be running Froyo, you don't have to be rooted, and you don't need Adobe.
Of course, the one thing this testing doesn't explain is why so many other people are having issues...To me, it sounds like it should just be straightforward for anyone.