The official 4.2 nintendo update was designed to kill homebrew. I'm a softmod guy and don't mess with chips, but I wouldn't recommend updating through nintendo to 4.2. If you have a game that wants to take you to a higher version that is not 4.2 then you SHOULD be good to go. (again, keep in mind that I'm not a chip kinda guy.) There is a link in my sig that tells how to update to 4.1 using wanikoko's updater, but make sure you read the entire guide before executing if you decide to. Especially the order in which to do preloader, update, and install the patched ios60.