Currently (2013-02) Netflix cannot run on Linux. Due to its reliance on Micro$haft Silverlight and DRM (digital rights management a.k.a the chains restricting human development). Silverlight is just Microsoft’s version of Adobe Flash.
Linux does have its own version of Silverlight called Moonlight, however it doesn’t have the DRM Netflix requires, but praise to the up-stream, someone hacked it!
Using WINE (Windows Is Not Emulated), a sort of Windows emulator and some modded FF (Firefox)/Silverlight files, Netflix will run beautifully!
Head over to http://www.omgubuntu.co.uk/2012/11/how-to-use-netflix-on-ubuntu, for detailed instructions.
If your following along from my Perfect Home Media Server post or using XBMCbuntu you may come across an Xorg compositing issue, as I did. Solution for that is here, http://www.crazysquirrel.com/computing/debian/xorg-compositing.jspx and more info here, https://wiki.archlinux.org/index.php/Xorg.