As we reported earlier that Apple has released iOS 5.0.1 IPSW Firmware for Developers along with the iTunes 10.5.1 Beta 2 for Developers. And it is, as always, possible to Jailbreak iOS 5.0.1 with  0.9.9b7. This guide will show you how to Jailbreak your iPhone 4, 3GS, iPod Touch 4G, 3G or iPad running iOS 5.0.1. Note that this jailbreak does not support iPhone 4S as well as iPad 2.

Well this is a tethered jailbreak which means that  with the guide. Just follow these simple steps to get your device jailbroken.

How to Jailbreak iOS 5.0.1 on iPhone 4, 3GS, iPod Touch 4G, 3G and iPad

Step 1: First of all, you will need to Download iOS 5.0.1 for iPhone, iPod Touch and iPad. Then of course you also need to Download iTunes 10.5.1 beta 2 along with the RedSn0w 0.9.9b8 for Windows or Mac.   Step 2: After Firmware on your iDevice.   Step 3: After downloaded in Step 1 and then click on "Extras" and then click on "Select IPSW" to manually select iOS 5.0.1 IPSW Firmware.   Step 4: Now after selecting iOS 5.0.1 IPSW Firmware, go back to the main screen of RedSn0w and click on "Jailbreak" followed by "Install Cydia". Now you will have to put your device in DFU Mode. In order to do so, press and hold "Power" button for 2 seconds, now press and hold "Home" button without releasing the power button for 10 seconds and after that let go of the "Power" button but keep on holding the "Home" button for 15 more seconds. Now if you've done it successfully, your device would be in DFU mode and RedSn0w will start to jailbreak it.   Step 5: Once the jailbreak process is complete, your device will automatically restart. Now click on "Extras" inRedSn0w window and then select "Just Boot" in order to use Cydia and other jailbreak functions. Just follow the onscreen instruction to "Just Boot" your device.   Now you will have your iDevice jailbroken on iOS 5.0.1 IPSW Firmware. Again, this jailbreak does not support iPhone 4S and iPad 2. iPhone Dev-Team are currently working on iPhone 4S jailbreak as well as iPad 2 jailbreak. So I guess iPhone 4S users and iPad 2 users will have to wait for some time.

UPDATE: RedSn0w 0.9.9b8 has been released by iPhone Dev-Team and changes have been made in this guide in order to jailbreak iOS 5.0.1 IPSW Firmware without pointing it to iOS 5.0 Final Firmware.