Apple is already working on  iOS 4.0.1 update to fix the reception issue known as "Death Grip” among bloggers’ community. Now rumors are in the air of the release of iOS 4.0.1 tomorrow as reported by Apple insider.

They further report that a software fix for reception issue is in the works as there was a thread on Apple’s tech support forums that confirmed that an iOS 4.0.1 software fix is coming early next week (that is possibly Monday). Later this discussion was taken down.

It is important that you should save your SHSH blobs of iPhone 4, iPhone 3GS, iPhone 3G, iPod touch 2G/3G before updating to iOD 4.0.1 because when iOS 4.0.1 will get released, Apple will stop signing old firmware and you won’t be able to downgrade back to iOS 4.0.

To save SHSH blobs of iPhone 4, follow this guide and to save SHSH blobs of iPhone 3GS, 3G and iPod touch 2G/3G, follow steps this guide under the heading Saving SHSH blobs.