There are a couple remaining known issues with 1.2.1.
Wireless – there were some issues here, we think they should all be fine after a couple commits this weekend. This isn’t fully verified yet though, if you were having any trouble with wireless in 1.2.1 please try an updated snapshot and report your findings in the forum.
VLANs – This one is difficult to quantify because it works fine in many circumstances, and fails in others. This will get some more attention over the next week.
You can always find the most up to date status of known 1.2.1 issues on the developer wiki.
Once we’re confident the wireless issues are indeed resolved and find and fix the cause of the VLAN problems some users are experiencing, we’ll be releasing the first official release candidate. The release candidate phase should be short, we expect a final release not long after the first RC assuming no additional significant issues are discovered.