With the iPad Camera Connection Kit, it's incredibly easy to download photos and videos from your digital camera to your iPad so you can view them on the gorgeous iPad display and share them with family and friends.
The kit includes two connectors, each with a different interface:
The Camera Connector features a USB interface. Just plug it into the dock connector port on your iPad, then attach your digital camera or iPhone using a USB cable (not included). iPhone 3G is not supported.
Use the SD Card Reader to import photos and videos directly from your camera's SD card. Connect it to your iPad, then insert your digital camera's SD card into the slot.
After you make the connection, your iPad automatically opens the Photos app, which lets you choose which photos and videos to import, then organizes them into albums. When you sync iPad to your PC or Mac, the photos and videos on your iPad are added to your computer's photo library.
iPad and the Camera Connection Kit support standard photo formats, including JPEG and RAW, along with SD and HD video formats, including H.264 and MPEG-4.
As you can see from above, you need to connect via USB cable to the connector.
Two adapters in the kit, 1 for USB, the other is a SD card reader. So I do not see any compatibility issues as you connect the USB cable to the K-r then the other end to the connector instead of a PC USB port.
Thanks Felix. The reason for my concern is that there are many negative reviews on the apple store website.
I read through some of them and most of the complains are for the lost of USB device functionality after the iPad firmware upgrade. There are also some stating that file name of the image has to fit certain criteria in order for it to work. A lot of mixed reviews, so a bit confused here 
Anyway, my sentiment is that if I want to stick to the original purpose of this gadget, transfer pics from sd card to iPad, and nothing fanciful, I will bet that it will work like what u said.
Tomorrow I will go down to the shop and bite the bullet. Wish me luck! 