Apple released iOS 5.1.1. So what? Jailbreak that one too! And if you have the latest RedSn0w (0.9.10b8b) , you dont even need to look for a new software. Compatible devices: iPhone 3G, iPhone 4 iPad iPod touch 3G, iPod touch 4G
How to Jailbreak iOS 5.1.1 tethered with RedSn0w
Step 1: Firstly, if you haven't yet, Download RedSn0w 0.9.10b8b from here.
Step 2: Turn your device to DFU mode after connecting and run Redsnow.
Step 3: Click on Extras and click on IPSW point to your iOS 5.1 firmware for this device.
Step 4:Wait till the software recognizes iOS 5.1 firmware. Then, goto the main page of Redsn0w and click on Jailbreak.
Step 5: It should now identify the build, Click Next.
Step 6: After Cydia is installed, reboot
Step 7: Goto Extras and click Just boot.
Step 8: After the reboot, you should be able to see a Cydia icon in your desktop.
Step 9:This should jailbreak you device now.
Just remember this is only a tethered jailbreak and will not still be usable if you reboot your device.