Following the release of iOS 5 Beta 7 along with iTunes 10.5 Beta 7, you will be happy to know that you can Jailbreak the updated device using the latest beta version of Redsn0w. This was confirmed by MuscleNerd, who is a prominent member of the iPhone Dev-Team.
Users can apply a tethered jailbreak on any device running iOS 5 Beta 7 using this tool. This is in exception of iPad 2 which can only be jailbroken (on iOS 4.3.3 and below) using the web-based JailbreakMe.
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Since this is a tethered Jailbreak you will have to connect your device onto a computer running Redsn0w whenever it's powered in order for it to boot into it's jailbroken state. The process is pretty strait forward and you can use our older guide if you have any issues or questions on the process.
The jailbreaking process will cause issues with your device warranty and you may face problems if you want to get it serviced by Apple in future. You also will not be able to get the latest iOS updates over-the-air. However you can also restore your device through iTunes and avoid any of the above said issues.