iH8sn0w has confirmed that an update on Sn0wbreeze 2.1 to jailbreak iOS 4.1 /iOS 4.2 is being implemented completely.After testing all the tool he will release the Sn0wbreeze 2.1.He has added that Sn0wbreeze 2.1 uses the latest Limera1n exploit (steak4sauce for older devices).
Those who don’t know, Sn0wbreeze is a jailbreaking tool like PwnageTool for iPhone and iPod touch which can be used to create custom .ipsw files. But unlike the PwnageTool, Sn0wbreeze is fully compatible to work with Windows machines without upgrading the baseband allowing you to unlock your iPhone 4, 3GS, 3G on older basebands.
4.2 is on its way (probably within this week). Make sure you have your SHSH blobs backed up with Cydia/TinyUmbrella, if you want to use sb.
Update for sb 2.1: limera1n/steak4auce implemented. Lots of testing, then release.
So, hackers are ready with their jailbreaking and unlocking tools just waiting for Apple to release iOS 4.2 firmware update. iOS 4.2 is expected to get released by 12 November.