Now we have got excellent news that  iOS 5.0.1 / 5.0 untethered jailbreak demoed in a video by the  iPhone hacker Pod2G, He has sent  you tube video link showing  iOS 5.0.1 / 5.0 untethered jailbreak in action on iPhone 4

Here’s what Pod2g said:

Hello,

 Here is a new video demo of the current status of the 5.0.1 jailbreak running on an iPhone 4.
 This is meant to reassure people that were thinking it only works on older iPods.
 The jailbreak is near ready for prime time (excluding 4S and iPad 2).
 Patches are the same as redsn0w’s. Expect the same level of stability.
 Some more days to wait. Be patient, we’re doing our best.
 ~pod2g

You’ve to watch this!