Apple is currently working on iOS 5.0.1 beta 2 to solve the iPhone 4S battery issues. As of now the new firmware is only available to registered developers, but iPhone Dev Team member, MuscleNerd, let us know that it still works with the current redsn0w jailbreak.
MuscleNerd tweeted: "The latest redsn0w will JB today's 5.0 1b2, but point it at either 5.0 or 5.01 IPSW for now. (Apple's being ruthless with betas!)"
The Dev Team recently released a tethered version of redsn0w for iOS 5. However, there is a simple solution to "semi-tether" your jailbroken device. The SemiTether package ensures you will not be stuck with an iPhone paperweight during a crash or unexpected reboot. You can read more about tethered vs. untethered iPhone jailbreaking here.
Even though redsn0w 0.9.9b8 works with the newest version of iOS 5, it does not jailbreak the latest iPhone or iPad. The good news is there is an iPhone 4S and iPad 2 jailbreak in the works. Last week MucsleNerd tweeted a screenshot of a jailbroken iPhone 4S running iOS 5, but it's not ready for the general public yet. It only seems like a matter of time before all the iDevices will be jailbroken.