The "inside source at AT&T" stated that the iOS 4.2 update would be available for download today, November 12, at 10 a.m. PT. And prior to that Apple will release iTunes 10.1 tomorrow.
The bug involves WiFi and causes the connection with the local network to drop every few minutes on both the iPad and iPhone 4. I haven't noticed this with my version of the iOS 4.2 Goldmaster that I've been running.
Mac OS X 10.6.5 for its AirPlay completed the certification stage a few hours ago and iTunes was ready 3 weeks ago. But everything is hinging on the release of iOS 4.2.
Here is a video of the WiFi issue that is being experienced in iOS 4.2 Goldmaster
MacStories is saying that this bug will delay iOS 4.2 for two weeks while Apple fixes and tests the new version, but 9to5Mac doesn’t think it will take that long: they’re pegging Tuesday, November 16th as the new iOS 4.2 launch date.