Apple has just released iOS 5.0.1 to resolve iPhone 4S battery issues. Same time iPhone Dev Team memeber MuscleNerd has then right mentioned on twitter that iOS 5.0.1 can be jailbroken on iPhone 4, iPhone 3GS, iPad, iPad 2, iPod Touch 3 and iPod Touch 4 devices using Redsn0w 0.9.9b7. Now iPhone Dev Team has released another revision of RedsnOw 0.9.9b8 which will also recognize the newly released iOS 5.0.1 beta. It requires Tethered boot means you will have to connect your iDevice with PC/Mac every time you boot up.
Redsn0w 0.9.9b8 Changelog as per developer,
Update #16: redsn0w version 0.9.9b8 will natively recognize the 5.0.1 beta that Apple let developers start testing this week (so you don’t have to play the “point at 5.0 IPSW” trick). Because the IPSW isn’t public, you’ll still need to provide it once to redsn0w (at which point it will cache all the important pieces so you don’t need to select it again).
For those 3GS and i4 users who preserve their baseband, the Mac version can also produce the NO_BB_* custom IPSWs for 5.0.1. (But please note that ultrasn0w doesn’t get updated for betas like this.)
This is still a tethered jailbreak for all except old-bootrom 3GS users.