Looks like anyone with a smart cover or a couple of magnets can now also get access to a passcoded iPad 2!
Definitely an issue but you only get access to a single app and only if the app is opened when the iPad goes to its lock screen.
This isn't a very pragmatic vulnerability to be exploited by an attacker but it should definitely get fixed.
As you can see in our video above, a Smart Cover can essentially unlock an iPad 2. The person who unlocks your iPad 2 will not have complete access to your iPad, but will be able to gain entrance to whatever you locked your iPad 2 on. If your iPad 2 went to sleep in Mail, Safari, Messages, Contacts, or Maps, you can imagine the sorts of personal information that can be viewed on your iPad. If you left your iPad 2 on its Home screen, the person can view which applications you have on your device, control media from the multitasking bar, but not much else.
Below is a temporary fix:
We have discovered that you can temporarily fix this bug by disabling Smart Cover unlocking in the iPad 2 settings menu under the General tab.
http://9to5mac.com/2011/10/20/anyone-with-a-smart-cover-can-break-into-your-ipad-2/