Citrix Reciever for IPAD

It should work. Are you pointing your Ipad at the Web interface or the PN agent site?

web interface. I am not sure what the PN agent site is

That would be the issue then, the Citrix Receiver requires the XenApp Services site (formerly PNAgent Site).  This sites on a Web Interface server but isn't the same thing as your WI Site.

Not totally accurate. The newest Citrix Receiver for Ipad actually uses web interface as a fall back method if PNagent is not setup. Which is why technically, it should work.

Im curious, After you VPN into your network, are you using the IPAD safari browser to hit your internal web interface, or are you actually going into the Citrix Receiver app and configuring it to point to your web interface?

Ok, I hadn't heard that yet, that is good news for people:

http://community.citrix.com/display/ocb/2010/12/20/Web+Interface+Now+Works+with+Citrix+Receiver+for+iPad+4.2+And+You+can+Take+your+iPad+to+Work

So are you using Receiver 4.2 and WI 5.x?  Check the requirements and setup docs to make sure you are configured properly.

Eh, good news maybe. The flaw with that, is that in huge enterprises, many times they have PNagent setup one way with policies for access and Web Interface setup a different way. If the client falls back to WI, polices can become circumvented.

Well in a large environment it would benefit the admin to build out the sites such that your fallback site is configured the same as the XA Service site and to use a separate one to manage separate policies.  I could see how that would be an issue but nothing you can't plan around in my mind.  Most people have difficulties getting the XA Services stuff running properly so letting them use the WI was a cool move.  Taking out the Program Neighborhood on the other hand...perhaps not the best thing to do.

I connect to VPN lauch citrix reciever which displays my web login and i login. I am not using safari on the IPAD at all

and we are using Citrix Presentation server 4.0

You apparently did not read the link I posted, I will give you the important excerpt (it explains why AdamBNYC asked about your browser):

"That means you can simply go to your companies Citrix logon page in Safari, enter the same credentials you usually use from a PC or laptop and you will be presented with the available virtual desktops or apps that IT has authorized"

So, based on this, you need to use the browser to initiate the session, the receiver will be invoked via the web browser.  Also (again in the link I posted) you will see that it is only supported on a 5.x WI site so full stop, you don't meet the requirements, no point in messing with this any more.