A few minutes ago Apple launched beta 2 version of iOS 5.0.1 and MuscleNerd confirmed to us that redsn0w 0.9.9 beta 8 can jailbreak it without problems. The only step we need to go through to jailbreak is to select an ipsw of iOS 5 or iOS 5.0.1 because redsn0w does not yet recognize iOS 5.0.1 beta 2. redsn0w still only does tethered jailbreak for almost all terminals, except make iPhone 3GS with old bootrom for which we can do untethered jailbreak. iPad 2 and iPhone 4S are not compatible with redsn0w and it is not known when they will be.
You can jailbreak iOS 5.0.1 beta 2 by following this tutorial but selecting an ipsw of iOS 5 or 5.0.1.
