The following are instructions on How To Jailbreak iOS 5 Beta 7 on iPhone 4/3GS, iPod Touch and iPad using Redsn0w 0.98b7.
The complete guide after the break.
NOTE: If you’ve already updated and are facing problems like the recovery mode loop, visit this guide HERE to downgrade to a stable release.
Tools You’ll Need:
iOS5 Beta 7 Firmware File. Click Here.
Redsn0w 0.98b7. Click Here.
iOS 5 Beta 6 Firmware File.
Step One
Download the official IPSW (Depending on your device). Download and extract Redsn0w. For convenience, place all of them in a folder on the desktop.
Step Two
Connect your iPhone to the computer and launch iTunes. When the phone shows up in iTunes select it from the list of devices on the left.  Now hold down Shift and press the restore button. You can also choose to update but restore is recommended; it’s always better to get a fresh start.
Step Three
As soon as you press Shift+Restore, a window will pop up asking you to select the IPSW file to be used. Point it towards the Official 5.0 Beta 7 IPSW you placed in the Jailbreak folder on the desktop.
Step Four
Once iTunes has successfully flashed your phone to the desired firmware, navigate to the Jailbreak folder on the desktop and launch Redsn0w.exe.
**Windows 7 users may need to run RedSn0w in Vista compatibility mode. You can do this by right clicking the executable and selecting Properties from the contextual menu
Once redsn0w opens, click the browse button.
Step Five
A windows will pop up asking you to select the Official IPSW file for your desired firmware. Point it towards the Official 5.0 Beta 6Â IPSW you placed in the Jailbreak folder on the desktop.
You will then be asked (if using a 3GS) if your device is a newer “fixed” model. If your’s is, then press the Yes button, click the No button otherwise. If you aren’t sure then simply press the Yes button.
Step Six
Once the firmware has been successfully identified click Next. Redsn0w will then prepare the jailbreak data.
After the data has been prepared you will be shown a menu where you can select different jailbreak options. You may select specific options depending on your needs, but for now we will only select “Install Cydia”. Select that option and then hit next to continue.
Step Seven
Connect the iPhone to the PC and then proceed to switch it off. Once the phone is fully turned off click Next. Remember to hold the phone in your hand before you press next as you will have to press various buttons on the phone to make it  enter DFU mode.
Step Eight
After pressing next, instructions to enter DFU mode will appear. To enter DFU mode, hold the power button for 3 seconds, then without letting go of the power button press the home button and power button together for 10 seconds after which let go of the power button and continue to hold the home button until your PC detects the phone. It may take several tries to get into DFU mode.
Once the phone has entered DFU mode, the process will begin. The phone will reboot.
When it’s completed it will show you this message. The phone will then reboot and the rest of the process will continue on your device.
Once your iPhone is done being jailbroken, you should see Cydia on your SpringBoard. This means the jailbreak has been carried out successfully. Congratulations on jailbreaking your iPhone 4/iPhone 3GS tethered on the iOS 5 beta 5 firmware.
NOTE: How to boot tethered jailbroken iPhone 4/iPhone 3GS after reboot, launch RedSn0w and select “Just boot tethered right nowâ€.
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