As we all know that Cydia had some Problems working with the iOS 4.2.1 GM and iOS 4.2. Hacker and Developer Johny Franks Thinks that he can fix this and Cydia will work for you on your iOS 4.2.1 GM/4.2. But to make it work on your iOS your Device should already be Jailbroken.
There was a Rumor a few weeks ago that A new version of Cydia will come soon, according to reports and rumor around that the new version of Cydia is ready but not released yet. And it may also solve the Problems with the New iOS's. So till now if you want Cydia to work on your iOS 4.2/4.2.1 GM then Follow this simple guide and you'll get it. This Msft_guy's method to work Cydia on your iOS. And you'll require MAC for this Purpose. So follow this sttep by Step Guide:
Step 1: Type the Following in the Terminal App of MAC OS X:
apt-get install bsdiff
Step 2: Download Cydia.patch file for iOS 4.2.1 from here and copy it to /Applications/Cydia.app/Cydia_ by SSH’ing into your iOS device.SSH should already be enabled on your device to do so.
Step 3: It's Almost Done, you just have to Re-Boot your Device and Cydia is Installed!
This is the Screentshot showing iPod Touch 4G running iOS 4.2.1 & cydia is Enabled and Working properly.
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