After iOS 5.0 beta 5 was released it took only a couple days for the Dev Team to roll out a new version of Redsn0w to jailbreak the new software. Read on for directions on how to jailbreak it.
You will need:
iOS 5 beta 5 for your device (Download)
Redsn0w 0.9.8b5 (Download Page)
NOTE: This is a tethered jailbreak, meaning that each time you want to reboot you will have to plug your device into your computer and run Redsn0w again.
1. Restore your device to iOS 5 beta 5
2. Open Redsn0w
3. Browse for and find the iOS 5 beta 5 ipsw you restored with and open it
4. Click “Next”
5. Check “Install Cydia” and click “Next”
6. Turn your device off, then follow the directions to put your device into DFU mode
7. Wait for Redsn0w to jailbreak your device, then wait for it to boot up
8. Repeat steps 2-6, with checking “Just boot tethered right now” instead of “Install Cydia” in step 5