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Apple has seeded the final GM release of iOS 4.2 to developers. The recently released Redsn0w 0.9.6b2 (based on Geohot’s Limera1n) can jailbreak all of the current iOS devices on iOS 4.2. This has also been confirmed by MuscleNerd of the iPhone Dev Team.

Today Apple released to developers the GM seed for 4.2.  Tinkerers will find that yesterday’s redsn0w jailbreaks today’s 4.2 GM seed, simply by pointing redsn0w at the 4.1 IPSW (rather than the 4.2 one).  Right now it mostly only makes sense for JB app developers to do that because many apps (including Cydia itself) need to be updated for 4.2.  However, if all you want to do is enable afc2 (to use iFunBox or other file browsers), or to tweak settings like Battery % and Homescreen wallpapers, then go for it (if you have valid paid access to the GM seed).  Be sure to uncheck the Cydia box, though!  Ultrasn0w unlockers should stay very far away from this!!

NOTE: All iPhone unlockers MUST STAY AWAY from iOS 4.2 until new version of Ultrasn0w unlock is available.

Step 1: Download iOS 4.2 & iOS 4.1 (required for Redsn0w 0.9.6b2) for your version of iOS device.

Step 2: Update to iOS 4.2 firmware using the IPSW file you just downloaded via iTunes 10.1 Beta 2.

Step 3: Start Redsn0w 0.9.6b2 and point it to iOS 4.1 (Final Version, NOT iOS 4.2) to proceed with the jailbreak.
 
Jailbreak iOS 4.2 (2)
Jailbreak iOS 4.2 (3)
Step 4: Now select “Install Cydia” and click “Next”. Optionally (if available), you can also select any other option you like.
Jailbreak iOS 4.2 (4)
Jailbreak iOS 4.2 (5)
Step 5: Now make sure your device is both OFF and PLUGGED IN to the computer before you click “Next”.
Screen shot 2010-11-01 at 8.08.08 PM
At this stage you will be presented with a screen where you will have to quickly hold “Power” button and then while holding the “Power” button, you will now have to hold “Home” button too. Now after few seconds release “Power” button but keep holding “Home” button until installation begins.

Step 6: Sit back and enjoy while redsn0w will do all the rest for you. Once done, your iPhone, iPad and iPod touch will restart automatically and you will find it jailbroken on the latest iOS 4.2 firmware.

Via : Redmondpie