I know that Netflix does not work with Linux because Moonlight (an open-source implementation of Silverlight) doesn't support encryption.
Have any workarounds or solutions been identified to bring Netflix to the Raspberry Pi for those of us that want to create media centers?
Nope, sorry.
There is currently no way to run Netflix in Linux without emulating a Windows environment, which is something the Raspberry Pi will not have the resources to attempt.
It is possible Netflix WILL run on the Raspberry Pi but it's based on current development of Android Pi. Currently Android compiles on the Pi but does not have video hardware acceleration. The developers are working on this now however with Broadcom. When finished the Android Netflix app should work just fine.
It's just waiting for finished driver development though.
I've been looking into getting Netflix on the Pi as well.
If you have a PC that is fast enough you can run netflix there and stream the desktop through VLC mediaplayer to a HTTP stream and view that in Raspmc on the pi. I used the H.264 + MP3 (TS) codec and had to set the framerate and resolution too. In XBMC I opened a playlist file that pointed to the stream.
My results: I didn't get audio to work and my PC was too slow to get the framerate and resolution high enough, but the idea has potential.
Another option is to wait for a decent android or Chrome OS build, these should support a Netflix client.
Try getting the Android Emulator included in the Android SDK to work. Netflix is available for Android, and Android is Linux.
How fast are solutions like VNC or Citrix? Could you run a VNC client on your RPi that connects to a VNC server running on a Windows box? Would this be fast enough for realtime video? And will VNC show Silverlight video or does that not work due to DRM type of stuff?
What about PlayOn which kind of re-encodes web based content like Netflix, Hulu, etc to stream to other devices? It only works with SD video, not HD, but is this a partial solution? It works with pretty much all DLNA compatible devices. And it seems to run on a bunch of media streamers, some of which have similar hardware to the RPi.
