We have gotten several reports that iOS 4.2.1 Golden Master has been successfully jailbroken, and a compatible version of Cydia will be available as soon as 4.2.1 is released. This build of iOS can be jailbroken with Redsn0w 0.9.6b2, and PwnageTool 4.1 same as iOS 4.1, you can follow the guide posted here and here.

The current version of Cydia is not compatible with iOS 4.2.1 and crashes upon launch. However, a working build is ready to go and will hit your jailbroken phones by the time you’ve got 4.2.1 installed. In the mean time you can follow the step by step guide here to install Cydia on iOS 4.2.1.

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[Source: iTWire]

Authors: _GadgetNews

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