The iPhone Dev Team has quitely released redsn0w 0.9.9b4 which comes
with some improvements for iOS 5 users. The 0.9.9 b4 version is made for
those who want to test their own custom RAMDISKS using the -r command
line option. In case you’re one of them, you will have to use the below
commands mentioned on the Dev Team blog.

Full changelog:
Update
#12: For those of you who experiment with your own custom ramdisks
using the -r command-line option, version 0.9.9b4 adds auto-detection
support for iOS5. This is needed because iOS4 and iOS5 treat the root
partition differently (it’s encrypted in iOS5). redsn0w will now upload
the correct iOS5 kernel by itself, but it’s up to your own launchd to
determine if it needs to mount using the old or new partition scheme.
redsn0w now also accepts both native and
img3-encapsulated versions of files you provide via the -r, -k, and -d
command-line options (do redsn0w -h to show all the available options).
Download Redsn0w 0.9.9b4