[HOW-TO] - Jailbreak iOS 5.0.1 Untethered On iPhone3GS, iPhone4, iPhone4-CDMA, iPad1, iPod touch 3G, iPod touch 4G (A4 Devices) Using Redsn0w 0.9.10b1

Notes from Dev-Team:
Here are the basic steps for how to get it:

• The untether is for iOS 5.0.1 on iPhone3GS, iPhone4, iPhone4-CDMA, iPad1, iPod touch 3G, iPod touch 4G
• If you have one of those devices and are not on 5.0.1 yet, update now! The SHSH window is still open for 5.0.1 If you unlock via ultrasn0w or gevey, make sure you only get to 5.0.1 via a custom IPSW! See the guides at places like iClarified.com if you don’t know how. Once you’re at 5.0.1, use the latest redsn0w 0.9.10 to both jailbreak and untether.
• If you’re already at 5.0.1 with a tethered jailbreak, you have two choices: either run redsn0w 0.9.10 over your current jailbreak (deselect “Install Cydia” if you do that), or install the Cydia package prepared by the chronic devteam. The patches are the same regardless of which you choose.
• Some of you are using a hybrid 5.0/5.0.1 configuration. If so, do not attempt to install this untether over that setup! You will most likely get into a reboot cycle. Do a sync and fresh restore to 5.0.1 then install the jailbreak + untether.

For Users On Stock iOS 5.0.1:

If your device is running stock iOS 5.0.1 then you can use download the latest Redsn0w 0.9.10b1 to for either Windows or Mac to give yourself an untethered jailbreak, instructions for which can be found below.

Here are the redsn0w download links:

• redsn0w 0.9.10b1 for OS X
• redsn0w 0.9.10b1 for Windows (be sure to run in Administrator mode)

UPDATE (Dec. 30, 2011): 

Here are the redsn0w download links:

• redsn0w 0.9.10b3 for OS X
• redsn0w 0.9.10b3 for Windows (be sure to run in Administrator mode)

Step 1: Download the latest version of Redsn0w from the links given above.

Step 2: Start Redsn0w, select "Jailbreak" then check "Install Cydia". Follow the onscreen steps to place your device into DFU mode. Quickly hold “Power” button and then while holding the “Power” button, you will now have to hold “Home” button too. Now after few seconds release “Power” button but keep holding “Home” button until installation begins.

Step 3: Wait for Redsn0w to apply the full untethered jailbreak!

Once done, your iPhone, iPad or iPod touch will be rebooted into fully untethered jailbreak mode!

Check this youtube video.