A beta version of redsn0w, version 0.9.6b1 has just been released by the Dev-Team. Redsn0w, version 0.9.6b1 enables you to jailbreak the iPhone3G and iPod Touch 2G on iOS 4.1 or 4.0. At this point redsn0w 0.9.6b1 is only available for OS X users, but most likely iH8sn0w will be working on a jailbreak for the Windows user.

IF YOU USE THE ULTRASN0W UNLOCK, PLEASE WAIT FOR PWNAGETOOL TO SUPPORT 4.1. DO NOT USE REDSN0W. That’s because to use redsn0w at 4.1, you need to already have updated to official 4.1 from Apple. If you do that, you lose the ultrasn0w unlock (possible forever).

Note: if you have an “MC” model of the ipt2g, your jailbreak will be tethered…sorry! (Consider rolling back to a FW supported by jailbreakme.com or spiritjb.com)

Source [modmyi]