MacStories (and several other tech blogs that have picked up the rumor) are reporting that the expected software update has been postponed because of "last-minute Wi-Fi connection issues experienced by many users running the GM build on the iPad."
For more on the 4.2 Golden Master problem, you can check out some of the discussions going on at the MacRumors forums. According to a poll there, 55% of users who have 4.2 GM installed aren't experiencing problems, but 42% are.
Some of the updates expected with iOS 4.2 include improved multi-tasking, AirPlay for wireless multimedia streaming and AirPrint. Apple hasn't said anything on the matter yet, but the iOS 4.2 update is still expected to drop before the end of the month.
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