Found a bug with the Alarm this morning. . . actually my wife found it when her alarm didn't go off this morning. Tried it on mine and Thomas' and the same problem. So I assume its a new bug with the iOS 4.2.1 for 2011 . . I'm sure the alarm worked perfectly in 2010.
I have already submitted a Bug Report to Apple, being New Year's Day here in Australia and early hours of New Years Morning in the US I don't expect anyone to actually read it LOL