Ever since upgrading to 3.2 a couple weeks ago I've seen a huge increase in routing timeouts on my AT&T iPhone 4S. I'd say I get routing errors at least 50% of the time. My routes are short and aren't in areas that I'm unfamiliar with (just trips to and from work and family 5-50 miles away) but I wouldn't trust Waze anymore to route me through an unfamiliar area. It has become that unreliable.
Attached is an image from last night. As you can see, I have a good cell signal and I was still getting mapping and traffic data so there was a data connection, but routing server timeouts. Also notice the distance indicated to the next turn. The total length of this route was about 10 minutes, 4 miles.
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Albany and Glens Falls, New York Area Manager
iPhone 4S iOS 6.0.1