Redsn0w has been updated to version 0.9.10b4 . This version of Redsnow will bring iBooks Fix to iOS 5.0.1 untethered jailbreak and also the Launchctl. You can use the tutorial here to jailbreak your iPhone 4 , iPod Touch 4 3G and iPhone 3GS using this tool .
How to Use Redsn0w 0.9.10b4 :
If you have already jailbroken your iPhone 4 , use this tool and rejailbreak using it and de-select “Install Cydia” option . If auto-detection fails and Redsn0w throws an error that “No identifying data was found” , you can pre-select the appropriate 5.0.1 IPSW using “Extras->Select IPSW”.You can also use Corona Jailbreak to fix the iBooks issues . Those who are facing issues with iOS 5.0.1 custom ipsw restore via iTunes , download iReb 5 to Fix 16xx errors .
Redsn0w is available for download on Windows and Mac OSX .
Quick Link : iPhone 4S Jailbreak on iOS 5.0.1 Video