The jailbreak everyone has been waiting for. Pod2G has released the untethered jailbreak for iOS 5.0.1. No longer do you need to rejailbreak your iOS device every time you reboot. The jailbreak currently works for iPhone3GS, iPhone4, iPhone4-CDMA, iPad1, iPod touch 3G, iPod touch 4G on iOS 5.0.1.
Update: A jailbreak now exists for A5 devices (iPad 2 and iPhone 4s). It's called Absinthe.