Pete,
As far as I can tell from reading the reviews etc, it is the same as the 550EX just with enhancements that take into account Digital, and the new E-TTL2 features of the newer cameras. I haven't read that it doesn't control the 420EX the same as the 550EX does, I think that would have appeared very quickly if it had not been the case. As it is still a new flash and not in many hands at present, it is a little hard to make a deffinative yes or no on that. I haven't gotten one, don't need it as I don't have an E-TTL2 camera, so wouldn't be worth buying it with the investment in the 550EX I have already made.