The Dev-Team have released an untethered jailbreak for iOS 5.0.1. The new jailbreak uses Redsn0w 0.9.10 b1 which is available for download at the following links:
Windows: Download
Mac: Download
But before all you 4s and iPad2 fans get too excited, unfortunately this jailbreak isn’t for you and will only work on the following devices: iPhone 4, 3GS, iPod touch 4G, 3G and iPad 1.
For instructions how to jailbreak with Redsn0w check out this link: http://www.spiritjb.org/2011/12/download-untethered-redsn0w-0.9.10-b1-jailbreak-5.0.1.html
If you’ve already upgraded to 5.0.1 and your currently using a tethered jailbreak, not to worry, simply go to the Cydia store and download the corona tweak to convert your current jailbreak to an untethered.
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