Is Butterfly Labs reputable / Should I preorder the SC Jalepeno?
EDIT:

My original answer may have made sense back when the question was asked, but now it is clear that Butterfly Labs cannot be trusted.

As they say, "fool me once, shame on you; fool me twice, shame on me". After all the delays and controversies with their FPGA line, they have given their word that with the experience gained they really will be able to deliver their ASIC line on October 2012. 10 months later (and 20-fold difficulty increase later), even the first pre-orderers didn't get their orders in full. This didn't stop them from announcing a new line, with pre-orders and the same empty promises. Which, if they deliver, will be better performing than their first ASIC line, without any compensation to their loyal customers who have waited more than a year.

The fact that their CEO was shown to be a convicted felon doesn't help.