Mac Stories is reporting that today along with the release of iTunes 10.1 was supposed to come iOS 4.2. This didn't happen and people were left in a bit of shock. Apparently, iOS 4.2 was delayed due to WiFi connection problems that testers experienced on the GM seed of the software update for iPad.

Basically, even if the iPad manages to successfully connect to a local network, the connection is lost after a few minutes. This seems to be the most common problem among users, although some can’t simply use Safari at all. The bug has been reported to Apple, and they apparently decided to delay the release of iOS 4.2 to fix the bug.

No official release date was ever actually announced for iOS 4.2, but updates like this one that deliver new features tend to be paired up with iTunes updates. iOS 4.2 is still on track to be released this November as planned.