This new version of Redsn0w gets you a tethered jailbreak The Dev-Team blog notes that this update "include[s] the public URLs for the IPSW files. This way, first-time iOS5 jailbreakers don't need to supply the IPSW file manually. The Dev-Team also said that this jailbreak is intended for developers to make sure that apps for jailbroken iPhones will still work, so casual tinkerers may want to hold off a little longer.
The hack will work on all iOS devices except--yes, you guessed it--the iPad 2 and naturally, the iPhone 4S. You'll have to tether you devices to a computer running Redsn0w to work perform the jailbreak magic--the sole exception being the so-called old-bootrom iPhone 3GS.
The jailbreak is also not recommended for those wanting to preserve their unlockable baseband (all iPhones have a baseband--it's sort of the OS for the GSM modem half. To hack an iPhone and keep all the phone's functions, you have to hack the GSM as well as iOS, hence unlocakbale baseband.).
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This story, "iOS 5 jailbreak is already here; geeks not surprised" was originally published by PCWorld.