As you know that IOS 5.0.1 has been released by Apple and this is the first update which can be downloaded & install on your idevice running IOS 5.0. Instead of downloading a complete firmware you will be only required to download the additional files which is of approx. 44 MB.
The good news is that latest version is jailbreakable using redsn0w but it is a tethered jailbreak which mean s you will have to connect your device with your computer each time you boot it else it will stuck on apple logo.
If you are not new to jailbreaking then you will already know the software SEMITETHER, so the best news is that IOS 5.0.1 is compatible with SEMI TETHER which helps the device to boot properly but CYDIA & other cracked softwares/tweaks will not work. All you will need to do is to tether boot it using RedsnOw.