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Guide: How to Jailbreak iOS 4.1 Beta with Redsn0w
Yes you read that right ! The newly released iOS 4.1 is jailbreakable using Redsn0w 0.9.5b5-5.
All you need is the latest iOS 4.1 firmware for iPhone 3G or iPod touch 2G (non-MC Models) and you can jailbreak it using Redsn0w on Windows and Mac.
Again, this is strickly for iPhone 3G and iPod touch 2G (non-MC models) only.

Instructions to jailbreak iPhone 3G and iPod touch 2G on iOS 4.1 using Redsn0w 0.9.5 as usual are exactly similar to the last release with iOS 4. Please read all the instructions posted here carefully before upgrading and jailbreaking your phone on iOS 4.1.
Once you have jailbroken your phone, you can unlock it using ultrasn0w 0.93 (on any baseband), guide for which is posted here