Following is the small help for those who want to jailbreak iPod..
What you need
1. iPod touch 4g - iOS 5.0.1
2. Windows 7 PC
3. iTunes 10.5
4. Redsn0w 0.9.9b8 https://sites.google.com/a/iphone-dev.com/files/home/redsn0w_win_0.9.9b8.zip?attredirects=0&d=1
5. The previous ipsw file
http://osxdaily.com/2011/10/12/ios-5-download-available/
This is very important as the redsn0w does not support the latest version of ipsw file installed with iOS 5.0.1
Some terms you need to know before moving further
Tethered jailbreak vs untetgered jailbreak
Please see the link below for more information
http://osxdaily.com/2010/11/24/tethered-jailbreak-vs-untethered-jailbreak/
DFU mode(link below for more informatio)
http://osxdaily.com/2010/06/24/iphone-dfu-mode-explained-and-how-to-enter-dfu-mode-on-your-iphone/
The steps mentioned below are applicable to tethered jailbreak as the untethered jailbreak is not yet available for iOS 5.0.1
The untethered jailbreak is available for versions less than 5.0. Please do reasearch before you upgrade to iOS 5.0
Before starting with jailbreak please copy the ipsw file which is downloaded in #5 (requirements section)
to Apple >>software updates
Backup your iPod touch using iTunes before starting the proces.
Steps are provided below
1.Turn the iOS device off and then connect it to the computer
2.Launch Redsn0w and click the “Extras” button, then click on “Select IPSW” – locate the iOS 5 IPSW (not iOS 5.0.1) and click “Open”
3.Click “Back” to return to the original Redsn0w screen and click on “Jailbreak” as usual
4.Put the iOS device in DFU mode as redsn0w instructs, holding down the Power and Home button for 10 seconds, then release the power button but continue to hold the Home button for another 15 seconds or so
As the jailbreak works, the iPhone/iPad/iPod will reboot and you’ll get a notification that it requires a tethered boot, let the device boot up as usual and then put the hardware into DFU mode yet again so you can perform the tethered boot and get Cydia to work
5.Back in Redsn0w, go to “Extras” and select the iOS 5.0 IPSW again, then click on “Just Boot” at the top of the “Extras” menu to perform the tethered boot