iPhone Dev Team has posted the latest update to hugely popular Windows jailbreaking tool for iDevices as redsn0w 0.9.6b1, allowing users to jailbreak iOS 4.1 & 4.2 Beta this release is capable of jailbreaking iPhone 3G, iPod Touch 2G at iOS 4.1 or iOS 4.2 using the age-old pwnage2 DFU-mode exploit.
IF YOU USE THE ULTRASN0W UNLOCK, PLEASE WAIT FOR PWNAGETOOL TO SUPPORT 4.1. DO NOT USE REDSN0W. That’s because to use redsn0w at 4.1, you need to already have updated to official 4.1 from Apple. If you do that, you lose the ultrasn0w unlock (possibly forever).
Any Windows users seeing “Waiting for reboot” for too long (more than 20 seconds or so), please try “shaking” the JB process by unplugging then replugging your USB cable (while letting redsn0w continue to run). Also, try using a USB port “closer” to your computer (as opposed to on your monitor or behind another hub).