iOS 5 has been “pwned” again! Within hours of iOS 5.0.1 beta 1 being released, a tethered jailbreak has been created.

iOS 5.0.1 is currently jailbroken using the latest redsn0w version just by pointing it over the iOS 5 IPSW. Below is the full instructions to jailbreak iOS 5.0.1 on all devices running it except iPad 2 and iPhone 4S.
NOTE: iPad 2 and iPhone 4S are not supported yet.
STEP 1: Download the required files:
STEP 2: Connect your device, sync it with iTunes then restore to iOS 5.0.1.
STEP 3: Open Redsn0w, click on Extras, then Select IPSW and point it to iOS 5 IPSW file.
STEP 4: Now hit back, then jailbreak and check on “Install Cydia”.
STEP 5: Follow the on-screen instructions to get your device in DFU mode.
After that, let redsn0w do its thing while it installs some exploits on your device. You’ll get white Cydia icon once jailbroken, then you’ll need to make tethered boot to get it working. In future, when you reboot your device, you’ll also need to tethered boot.
iOS 5.0.1 Tethered Boot
STEP 1: Open Redsn0w, hit Extras then “Just Boot”.
STEP 2: Hit next and then follow the on-screen instructions to get in DFU mode.