Update November 23, 2010: Updating the MiFi to firmware 7.3.11 appears to resolve these problems for me. The updater is currently available only for PCs, so Mac users will need to borrow a friend’s computer or use Fusion or Parallels to install the firmware onto their MiFi. Daniel Odio has additional details on his blog.
The following post was written using the MiFi with firmware 7.1.6. The problems listed below manifested itself for me and several other people. Read the update above on how to upgrade your MiFi to the latest firmware which has resolved the problem thus far for me.
So, Verizon is now selling the iPad bundled with the MiFi wireless 3G hotspot. Unless Verizon and Novatel (makers the MiFi firmware) have solved MiFi WiFi disconnect problem, there are going to be a lot of unhappy customers.
Many users of this setup for the past year have experienced random disconnects with the MiFi when used in WiFi mode. As I pointed out in my post on the subject back in April, the device works fine in tethered mode, but fails horribly — disconnecting sometimes every minute — in WiFi mode. To my knowledge there hasn’t been any acknowledgement of this problem on the part of Verizon nor Novatel, nor has there been any firmware update to rectify the issue.
Now that more customers will be “enjoying” this problem, perhaps a solution is not far down the road!