It’s now possible to jailbreak iOS 5 Beta 1 using limra1n exploit. Strangely, just after 24 hours iOS 5 beta 1 was given to developers, it had been jailbroken. As for now, it can be done by using tethered boot only. It’s also heard that iOS 5 beta 1 can also be jailbroken on fourth generation iPod touch using limra1n exploit.
As mentioned earlier, tethered boot is required to jailbreak iOS 5 beta 1 and there is rumor that Apple, after developing the iOS 5 beta 2 and beta 3 will leave the untethered jailbreak exploit unpatched. If you are waiting for iOS 5 beta 1 untethered jailbreak, you have to wait as it’s not possible now.
Some of the compatible devices on which iOS 5 beta 1 can be jailbroken are iPhone 3GS, iPhone 4G, iPad 1,iPod touch 3G, 4G and Apple TV 2G. iOS 5 beta 1 on all these devices can be jailbroken using limra1n and since iPad 2 is not compatible with limra1n, forget about Jailbreaking iOS 5 on it.
More details on Jailbreaking of iOS 5 will be updated in a near future