MacStories reports that the iOS 4.2 update scheduled for tomorrow has now been delayed due to a significant bug found in the gold master build. The bug involves WiFi connection issues found by developers currently running iOS 4.2 GM on the iPad. "Basically, even if the iPad manages to successfully connect to a local network, the connection is lost after a few minutes," MacStories states. "This seems to be the most common problem among users, although some can't simply use Safari at all." This bug isn't confined solely to the iPad, either -- our own Chris Rawson noticed the same WiFi connectivity issues while running iOS 4.2 GM on his iPhone 4.
Due to this, Apple has reportedly decided to hold off on releasing iOS 4.2 while the iOS team fixes the WiFi bug. MacStories' source says developers could expect a new iOS 4.2 GM release as early as tomorrow, but it will be at least another week of testing before iOS 4.2 is released to the public. It may even be another two weeks until it debuts.
Earlier this week, MacStories accurately predicted the release of Mac OS X 10.6.5, though their prediction that iTunes 10.1 was scheduled to be released on the same day didn't pan out.
UPDATE: Mark Gurman of 9to5 Mac just emailed me to point out that iPhoneHellas is reporting the delay won't be as long as expected and iOS 4.2 may be launching on Tuesday, November 16th now. Obviously, this story is still developing and the only people who possibly know for sure just how long iOS 4.2 will be delayed are the folks in Cupertino.