We earlier told you to save SHSH blobs in order to get earlier untethered 4.2 jailbreak which is being prepared by iPhone Dev Team. It turns out to be that team is going to release a method to jailbreak 4.2 using Limera1n’s exploit along with some other hack. It seems that they don’t want to burn a userland bug in order to jailbreak iOS 4.2 on iPhone, iPod Touch, and iPad.
This method requires you to save SHSH blobs on an earlier firmware. At the same time, Cydia is also preparing blobs for those who are enjoying jailbroken iOS 4.2 beta 3 on any iDevice. This will help serving iOS 4.2 jailbreak to everyone even on beta firmware. Besides, PwnageTool 4.2 is expected to server 4.2 jailbreak on fresh iPhone 4, iPod Touch 4G, and iPad.
Source: ih8sn0w
Update 3: Sn0wbreeze will likely support tethered iOS 4.2 jailbreak for OTB device.
Update 2: Cydia Update will be pushed after iOS 4.2 is revealed in public.
Update 1: iPhone Dev Team asks to prepare for iOS 4.2 Jailbreak and Unlock.

