If you want to Jailbreak iOS 5.0.1, then perhaps the most easiest jailbreak tool is redsnow beta 9. The new and improved version of redsnow allows you to jailbreak iOS 5.0.1 outright without even needing the assistance of other firmware. Here are simple steps on how to jailbreak iOS 5.0.1.
How to Jailbreak iOS 5.0.1 with redsnow
1. The first step is to place your iDevice into DFU mode.
2. Download free redsnow beta version redsn0w 0.9.9b9 from redsnow.
3. After downloading redsnow, click Jailbreak.
4. After the redsn0w finishes the Jailbreak, return back into DFU mode.
5. Click Extras, then Boot Tethered in redsn0w to return your iDevice back to the home screen.
6. Now run Cydia for updating the latest files.
Watch the video for instructions.