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Yep sn0wbreeze 2.2.1 now supports 4.2.1fw. Just go to iH8sn0w.com | Jailbreak your iPod touches and iPhones to download. Yes sn0wbreeze will preserve baseband. Heres a video guide you can follow. Sn0wbreeze 2.2.1 Jailbreak 4.2.1 / 4.2.6 on iPhone, iPad and iPod touch | Redmond Pie