Step-by-step Tutorial: How to Untether Jailbreak iPod Touch 3G Using RedSn0w 0.9.10 (Windows) [iOS 5.0.1]
UPDATE: Apple released iOS 5.1 that is only tethered jailbreakable with redsn0w. Apple has stopped signing iOS 5.0.1, so you can NOT restore to 5.0.1 any more (both original and custom), unless you have saved your SHSH keys for 5.0.1. If you are on 5.0.1 you can jailbreak with redsn0w.
This is step-by-step instructions on how to perform untethered jailbreak of youriPod Touch 3G on iOS 5.0.1 firmware using RedSn0w 0.9.10 for Windows.
Untethered jailbreak means that each time you restart your device you will NOT need to connect it to a computer and run utilities.
Important: Please, consider reading our Jailbreak & Unlock FAQ, if you have other device or firmware and especially if you have questions or troubles.
Please think first, before you do something.
Create a folder on your desktop (or any other folder on your computer) called Pwnage
Download the latest version RedSn0w 0.9.10 from here. Save it in the Pwnage folder.
Extract the redsn0w executable from the RedSn0w zip file into the same folder.
Connect your iPod to the computer and launch iTunes.
Select your iPod from the list of devices on the left. Create a backup by right-clicking on iPod name in Devices (iTunes left pane) and choosing Back Up.
If you are already on iOS 5.0.1 you can now skip to step three.
Download iPod Touch 3G firmware iOS 5.0.1 to Pwnage folder. It is better to use Firefox, because some browsers (f.e., Safari) extract ipsw: