On new iPad, "notify me" button does not function in Find My Friends I want to use the new notify me feature in find my friends, so I can know when they arrive at XX or leave from YY.

I have two friends set up in Find my Friends.

I have upgraded to the new iOS 6. This is a new iPad.

When I am in the find my friends app, I can see the "notify me" button, but it is greyed out slightly and pressing it does not work. Weirdly, if I hold my finger down on it, the classic spinning clock flower icon thing briefly spins as if it started to try something.  

Any ideas?
This has to do with your friends and not your device. I haven't nailed down exactly why some of my friends allow me to set geo-fenced alerts and others do not.

I don't see a setting to disable it other than the Show Geofence Alerts From: which implies that I can restrict those I see - not those I share with.

Sorry I can't offer a perfect fix, but this is something on the account / friend's side of things and not a switch you can control on your device.