Joystiq finally has some news on the long-awaited patch for Castle Crashers. According to a post on developer Behemoth's site, the problems (including connectivity issues) have been "knocked out" and the team is currently verifying the updates before sending it off to Microsoft for certification.
In perhaps one of the biggest understatements, the post states, "we are aware that many of you are unhappy about the wait" but explains that they had to fix all known issues at once, as opposed to release incremental updates. Certification can take a few weeks, so don't hold out hope for seeing the patch before Halloween. There should be more than enough titles to keep your attention in the interim.