This is huge, PwnDevTeam has released a beta of Ac1dSn0w, a new utility to jailbreak the iPhone 4, iPhone 3GS, iPad 1, and iPod touch 4G on iOS 5.
I'm pleased to announce that we've just released Beta 1 of Ac1dSn0w for Mac OS X Lion (should also work on Snow Leopard). Ac1dSn0w allows you to jailbreak your iDevice tethered. It also provides features like Tethered Boot, Pwned DFU, and Exit Recovery to get your device out of Recovery Loop.
Supported Devices (iOS5/iOS5.0.1):
iPod Touch 4 G
The team has posted the following steps to using their new utility.
How to Jailbreak iOS5/iOS5.0.1 via Ac1dSn0w:
1. Download Ac1dSn0w
Update x1: MuscleNerd of iPhone Dev-Team has confirmed that Ac1dSn0w in it’s current state contains code that has been illegally distributed. We have removed all the download links of Ac1dSn0w until the team behind the tool fixes this issue. We highly recommend using iPhone Dev Team’s Redsn0w, which can semi-tether jailbreak iOS 5.x on iPhone 4, 3GS, iPad 1, iPod touch.You can find them here http://iphone.pandaapp.com/jailbreak/
2. After downloading, open it and you'll see the following screen:
Note: You can click 'Show Console' to see some device related information. It also shows you the current state of your jailbreaking process. The Assistant Panel helps you to put your device into DFU Mode.
3. Connect your device with your Mac.
4. Turn your device off.
5. Click 'Show Assistant' and follow the onscreen instructions to enter DFU Mode.
6 . Once you're in DFU Mode just hit the 'Jailbreak' Button and wait until it's done (the device will reboot).
7. Put your device again into DFU Mode (Step 5) and hit the 'Tethered Boot' Button.
Done: Your device should now be jailbroken with Cydia installed.
The current version of Ac1dSn0w is in an early development stage. In the future it will also be able to jailbreak remote devices. This means that you just need to install a server program on any OS (Linux, BSD, Windows) and Ac1dSn0w will jailbreak it on a client machine anywhere in the world. Other upcoming features are:
Custom Firmware Creation
iRecovery Remote (you can talk to remote devices and send your own payloads etc)
Hit the link below to learn more about the utility.