We recently heard from MuscleNerd that Chpwn and Saurik were working hard to prepare a new version of Cydia. The new version will have a feature that allows one to choose whether they are a User, Hacker or Developer.
However, at the time we were unsure if the new version of Cydia would work with the new firmware. The question's already been answered via Twitter, and it turns out that they are just waiting for iOS 4.2 to be released out into the wild:
Currently, there are already jailbreak options available for the upcoming release as we've recently learned, such as sn0wbreeze and a slew of others that make all devices and firmware possible to jailbreak. Others will probably be releasing tools as well, but our recommendation is to stick to the tools from the Dev-Team.