MobileTerminal is an application for iDevices designed by saurik to allow users to manage iOS using a "command line" interface. With the help of MobileTerminal we can install/uninstall applications, we can find out various information about the operating system, we can change the SSH password of the terminal plus much more. Unfortunately, in iOS 5 Apple changed a lot in the operating system for iDevices, so the MobileTerminal from saurik's repo doesn't work that great.
To solve this problem, there is a very simple solution and it assumes that you add the repo to Cydia: http://cydia.xsellize.com and install the MobileTerminal version 520-1 application. After installation, you can open it and use it without problems.
I installed it from repo.insanelyi.com and it works just as well. when I tried to install the one from bigboss it didn't work..btw I have 3gs with 5.0.1
And don't forget to install inetutils, which allows you to use ping, telnet, ftp and other commands.
@sk please tell me where I can find inetutils.. I have several sources in cydia and it cannot be found in search. I found some bashutils.
I have version 1.6-8. So better search there. Or set cydia to hacker to show you more packages (manage -> settings).
Hacker setting worked. Thank you.