Jailbreak iOS 5.0.1 Tethered with Redsn0w 0.9.9b8 (Tutorial)
For those who updated to iOS 5.0.1 or are planning on it, as you know from our 5.0.1 update post, you have lost your chance for an untethered jailbreak. However, you can still do a tethered jailbreak on 5.0.1 since all A4 and earlier devices are permanently jailbroken tethered. Redsn0w has not yet been updated to support 5.0.1 so you will have to use the 5.0 version to jailbreak and boot tethered.
DOWNLOAD
Redsn0w 0.9.9b8 - WIN
Redsn0w 0.9.9b8 - OSX
iOS 5.0 firmware (MUST be 5.0 not 5.0.1)
Step 1: Download and open Redsn0w 0.9.9b8 and open it.
Step 2: The first thing you must do is point Redsn0w at the 5.0 firmware you downloaded(since Redsn0w doesn't natively support 5.0.1 yet). Click on the "Extras" tab and then click "Select IPSW" and browse for the iOS 5.0 firmware you downloaded.

Step 3: After you have pointed Redsn0w at your 5.0 firmware hit back and click "Jailbreak." At this point, Redsn0w will walk you through putting your device into DFU mode. If you already know how to enter DFU mode go ahead and do it before clicking next(this will cause Redsn0w to skip right over the DFU instructions screen). If you don't know how to enter DFU mode, hit next and follow the onscreen instructions.
Step 4: After Redsn0w recognizes your device in DFU mode, it will begin the jailbreak process(you do not need to do anything else).
Step 5: After Redsn0w is done jailbreaking your device remember that you MUST boot tethered for Cydia to work(since this is a tethered jailbreak). Go back to the main screen of Redsn0w and select "Extras" again but this time select "Just Boot"

Step 6: Redsn0w will walk you through DFU mode once again, but this time when your phone reboots you will now be jailbroken and Cydia should work just fine. If the icon is still white even after booting tethered don't worry, it should still work and the next time you respring your phone will rebuild the icon cache and your Cydia icon will be restored.
Remember that you MUST repeat step 5 every time the phone reboots or loses power(respringing is fine without booting tethered).
If you have any questions, feel free to ask!
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