The newly released software update from Apple can be JailBroken using Redsn0w 0.9.9b8. Unlike previous redsn0w, you don’t need to play with point out iOS 5.0 trick. Instead, you can directly browse iOS 5.0.1 in the latest Redsn0w to JailBreak your iPhone, iPod touch or iPad. Due to the fact that iOS 5.0.1 is currently available for developers, you need to point out at least once. 
Once it would be released for public, you may not require to do the same. If you want to know the changes in iOS 5.0.1 beta, refer to the post here. Similar to iOS 5.0, this JailBreak also remain tethered. Though, you can anytime make it semi-tethered because of the package from the BigBoss repository in Cydia. Fortunately, Semi-tethered JailBreak is now associated with mobile substrate, many features would work even after the reboot.
Those who wants to preserve the baseband using custom firmware, it can be done in the case of iOS 5.0.1 too. However, ultrasn0w will be updated only after the public release. Let’s know if you have any doubts in the comments section. Checkout the dev-team blog for more info on it.