Update 1: iOS 5 Final version has been released for Download and Jailbreak - Click Here
The iPhone Dev Team have updated their redsn0w jailbreak program. They have now released redsn0w 0.9.8 beta 2 for jailbreaking iOS 5 beta 3 tethered on iPhone, iPad and iPod touch. Redsn0w 0.9.8b2 is available for download on both Windows and Mac machines.
MuscleNerd, member of the iPhone Dev Team tweeted:
redsn0w 0.9.8b2 http://is.gd/6eek4Y should fix 50b3 App Store issue (if you're already JB, just use this to boot tethered)Basically, those who had jailbroken iOS 5 beta 3 with redsn0w 0.9.8b1 were complaining that apps downloaded from the App Store were not opening. This is a sandbox issue, and to fix that, redsn0w 0.9.8b2 has been released which now recognizes the ipsws of all three iOS 5 betas. So when you follow our guide to jailbreak iOS 5 using redsn0w, just select the iOS 5 beta 3 ipsw and boot tethered. No need to re-run the jailbreak if you have already jailbroken iOS 5 beta 3 with redsn0w 0.9.8b1.
On the other hand, if you are doing a fresh jailbreak, then you obviously have to install Cydia. Do remember that this jailbreak is tethered and will require you to connect the device to the computer each time it has to boot up.
Download redsn0w 0.9.8b2 for Windows and Mac