Apple just launched iTunes 10.1. This new version brings support for playing videos over AirPlay and “stability and performance improvements.” The new version of iTunes is also required for syncing devices that run the forthcoming iOS 4.2. Given that the iOS 4.2 update can only be installed with iTunes 10.1, chances are that the next version of Apple’s operating system will be released in the next few days as well.

As we noted earlier this week, the iOS 4.2 update is the first major new version of Apple’s mobile operating system for iPad users. Rumor has it that iOS 4.2 is coming out slightly later than planned because of a WiFi bug in the latest version that went out to developers and testers. As usual, though, it is hard to confirm this and we still expect to see iOS 4.2 within the next week or so.

This new version of iTunes also enables video streaming through AirPlay, which allows users to wirelessly stream videos, pictures and music from iTunes to the new Apple TV. Until now, AirPlay only worked for audio and photos. Besides this, there are no major new features in this new version of iTunes (the release notes also make no mention of AirPrint, by the way). If you are using iTunes to sync an iOS device, we recommend you update as soon as you can, especially if you plan to update to iOS 4.2 as soon as it is released.