I AM SO GLAD TO BE ABLE TO TELL YOU GUYS THE GOOD NEWS.

Looks like the untethered 4.2.1 jailbreak for iPad has been released:
Jailbreak iOS 4.2.1 Untethered iPhone 4, 3GS, iPad, iPod touch with Redsn0w 0.9.7 [How to Guide] | Redmond Pie

As from what I've read, it is only in "beta". I have not tried it yet. Anybody want to give it a whirl.

Says you need SHSH blobs from 4.2b3

Its a beta, not even an RC. Also it only works on Mac's. Stay away, unless you enjoy self flagellation.

whatever way you look at it, its still better than a tethered jailbreak

Hope your not back posting with problems. Let us know how that's workin for ya.

I'll wait for the official untethered jailbreak, not the beta

Here's some notes from the Dev-Team Blog:

• This is a beta tester program. It’s not a general release! Things can go very wrong, so please don’t even consider testing if you have pictures or other media on your device that you haven’t backed up!
• For the same reason, please don’t participate if you rely on the ultrasn0w carrier unlock. Wait for the final version!
• Until we fix some sandbox issues with bluetooth, the bluetooth functionality is disabled.
• This very first beta1 is limited to iPhone4, iPad, and iPod touch 4G.
• Cydia must have your 4.2b3 SHSH blobs saved on file. (As we approach a general release, we’ll provide a way to let you use locally saved hashes too).
• You must already have the usbmuxd software installed and running on your Mac (this requirement will eventually go away too). The correct invocation of the relay is just as that page says: “./tcprelay.py -t 22:2222”. If the relay isn’t installed or running correctly by the time the redsn0w ramdisk has started, you’ll need to restore to stock FW again to try it again. Please test it beforehand to save yourself some time!

Sent all day trying to get the new jailbreak to function, ended up restoring, think I will stay here awhile before I do another jailbreak.
Thanks anyways Dev Team.

Didn't work for me either "An unknown error has occured" even when just trying to jailbreak a newly restored iPad.

I would have tried, but it's mac-only so far.
I don't care about the beta stuff. In opposite, I think that makes it more interesting and challenging.
And my iPad isn't a such important part, so even if it would go wrong....then I'd just wait until it works out.

from what i have researched, you'll have problems playing your music from iTunes, bluetooth won't work either. I would most likely wait.