Pod2g has confirmed that his newest jailbreak works with iOS 5.1.1. As you can see from the video posted below, pod2g has jailbroken an iPad 3 running iOS 5.1. On Friday, he tweeted that the same untethered jailbreak works with Apple's iOS 5.1.1. This means new iPad or iPhone owners with 5.1.1 pre-installed (or those who accidently updated) will be able to jailbreak their devices once it's released.
The latest untethered jailbreak should work on all iOS devices, including the new iPad and iPhone 4S. Pod2g has not given an ETA on a public release, but with all the progress the jailbreaking community has made recently it should be soon.