This error is NOT specific to to iOS 4.2 golden master!!
In fact I'm really glad I saw the video, because I thought I was the only one to have this problem--and mine happened on OS 3.
After not finding adequate help for this online, and exhausting all the restarts and hard resets and everything else I could do -- including lots of fiddling with my TimeCapsule router -- I did a restore of the iPad and the problem promptly went away, never to return.
But this little bug is certainly possible not only on 4.2 GM
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