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Step 1: Download and install the new iTunes 10.5 on your Windows PC or Mac. Connect your iOS device with your computer and make sure you make a backup of everything.

Step 2: Now upgrade your iOS device to the final version of iOS 5 using iTunes 10.5 on your Windows PC or Mac.

Step 3: Download the new Redsn0w 0.9.9b7 for Mac or Windows.

Step 4: Click on the Jailbreak option, select Install Cydia and follow the onscreen instructions to enter DFU mode. Once youre in DFU mode, Redsn0w will perform the jailbreak (without having to have you select the IPSW file manually! YES, the new Redsn0w can fetch all the required files automatically from Apples servers).

Step 5: Booting into Tethered-Jailbreak Mode:
Once youve installed Cydia, you will need to boot the device into a tethered jailbroken state. Go into DFU mode, and then in Extras, opt for Just Boot. Redsn0w will subsequently boot your device as tethered. Note: Due to the nature of this jailbreak, you will have to repeat this booting sequence every time you wish to reboot your device.

How To Get Semi-Tethered!
STEP 1: Once jailbroken, open Cydia then tap on Manage > Sources.

STEP 2: Now tap on Edit from the upper right of the screen then add and write down the following repository: [ Register or Signin to view external links. ]

STEP 3: Search for SemiTether, install it then reboot your device.

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iOS 5 semi-tethered jailbreak is a kind of jailbreak which allows you to reboot your device without needing to a compute for Just Tethered Boot option in redsn0w. Yes, its similar to an untethered jailbreak but actually 99% of your jailbreak related apps and tweaks wont work at all. The semi-tethered jailbreak is made as a protection for you if your device reboots while youre on the road. It allows you to make the most of important functions but you wont get back to fully functional state until using redsn0w again, when you get home.

What functions can be done and cant be using Semi-Tethered jailbreak
1) Can use phone, sms (text messages)
2) Can use every other stock app on iphone.
3) Cannot use mobile safari
4) Can use other appstore web browsers such as atomic web browser
5) Cannot use mail app. You could install a gmail app from appstore or such instead.
6) You cannot use any jailbreak tweak, app, cydia until you boot tethered.
7) While in the semitether booted state, you should not add a jailbreak ios5 notification such as sbsettings to notifications during this state or your device will be stuck in a respring loop until you get home to boot tethered.

New Update! [ 0.9.1 ]

Summary of changes:

Much more stable with new mobile substrate
Can patch safari so it works in the non-jailbreak reboot mode
App to monitor the status of your semitether and reapply. Check after cydia installs.
Keep in mind that I am additionally looking into a patch for the mail.app

Contact me through the post if its not urgent if it is urgent PM me so I can resolve it faster for you just don't spam please