Everybody’s loving iOS 4.2 for iPad: it brought multitasking to the tablet, folders, AirPlay (sort of) and, ehm, AirPrint. Limitations aside, iOS 4.2 was needed. We have already talked about this. As more users upgrade to the new OS every day though, more issues Apple didn’t discover in the early developer betas and GM seeds start to appear.

First off, Richard Gaywood at TUAW reports of an annoying bug with shift-drag capitalization that doesn’t allow the OS to pick up the right characters when sliding your finger from the shift button to the desired characters:

Now, I move my finger down to shift, place it on the screen, drag to the letter I want, release it – and get something random. Rarely, it’s the character I was aiming for. More often, it’s some other character I dragged my finger over on the way to it. Even more often, it’s something nothing at all.

You can watch a video of the issue below.

Some users on Apple’s discussion boards are also reporting of a different behavior with modifier characters (such as accents or umlauts) on iOS 4.2.1 for iPad: on 3.2.2, when you held a key the OS showed modifier characters with the most common one already selected. On iOS 4.2.1, the keyboard doesn’t automatically select the most common modifier character – it opens the popup menu but selects the normal character instead.

As you can guess this is not really useful as you can reach that character anyway by simply pressing the default key. Either a bug or a design decision, we’re hoping for a fix in a future version of iOS.