You can always put movie rips on your SD card and watch them. You can't however download them from Netflix and watch it later....they are all about the streaming.
I am LOVING having Netflix on my Evo. I get pretty good 3g speed here and the streaming video quality is incredible. As if I wasn't in love with this phone enough already!
The app got broken with Gingerbread. It is believed that Netflix is working on a fix. Until then, the EVO is an incompatible device and Netflix shouldn't show up as an option in the market when browsing on an EVO 4G.