The iPad's built-in document management is kludgy. Even finding the document tools is a chore (they're under the Apps tab in iTunes, way down there at the bottom).
But there's an alternative. With $0.99 and a little effort, you can wirelessly (and easily) transfer documents to the iPad. Here's how:
1. Sign up for a free Dropbox account.
2. Install GoodReader on your iPad. It's $0.99 well spent.
3. Launch GoodReader. Select the Connect to Servers menu. Select Add and then select Dropbox.
4. Configure the Dropbox settings in GoodReader: Readable Title can be whatever you like ("My Dropbox Account," "My Stuff," "Fred" -- anything). The User and Password fields need to match your Dropbox credentials. Click Add when finished.

5. Your Dropbox account should now appear under GoodReader's Connect to Servers menu. Select it and GoodReader will display your Dropbox files.
6. Navigate to the file(s) you want to transfer to your iPad. Select them and GoodReader will begin the transfer. Close out of the Dropbox menu and you'll see your transferred files under the My Documents pane. Select a file and start reading.
Additional notes:
-- GoodReader can also connect to MobileMe, Google Docs, box.net and WebDAV-based servers.
-- GoodReader has a built-in Wi-Fi tool that lets you wirelessly transfer documents to an iPad from a desktop or laptop. It's not the easiest thing to use, but it works very well.
-- You cannot can use GoodReader to directly transfer files from the iPad to Dropbox. As GSWoods noted in the comments (thanks!), here's how you do it: Go to Manage Files, select the file you want to transfer, click Copy, go to the Connect to Servers tab and select your Dropbox account. In the pop-up menu, click the Paste button. It's not exactly drag and drop, but it'll do in a pinch.
Related:
- How to save photos from email and web pages to your iPad
- Why does my iPad constantly lose its WiFi connection on my Home Network?
- iPad quirks and criticisms

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