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Jailbreak iOS 4.1 Beta 2 on iPhone 3G & iPod Touch 2G Using Redsn0w

iOS 4.1 Beta 2 was released last night and I think it fixed some bugs and solved the proximity sensor issue which was plaguing some iPhone 4 users since launch. MuscleNerd has tweeted that Redsn0w Beta 5 can be used to Jailbreak iOS 4.1 Beta 2 for both iPhone 3G and iPod Touch 2G, But Ultrasn0w will not work as iOS 4.1 Beta 2 Changes the Baseband and need to rewrite Ultrasn0w!

If you’ve updated to 4.1beta2 on iPhone3G or iPod2G(non-MC), you can use this redsn0w from June to jailbreak. Just point it at the 4.0 IPSW (the public one, not the developer GM one).
(Yes – point it at the 4.0 IPSW even though you’re at 4.1beta2).
Don’t do this if you need the ultrasn0w carrier unlock!!
Note 1: This won’t hacktivate your iPhone3G – but for those with legit access to the 4.1beta2 this shouldn’t matter. Please don’t pirate Apple software
Note 2: If you’re at 4.1beta2 you’ll probably experience network problems after jailbreaking. Until a new version of redsn0w is released, you may need to rely on afc2 access (such as FunBox-like file browser programs) to manipulate your filesystem.
Note 3: This is recommended only for power users who can deal with the problems that will pop up as the JB apps fall further behind the beta firmwares.

The guide is simple and easy, Just follow the guide posted here to Jailbreak iOS 4 on iPhone 3G and iPod Touch 2G and Yes, point Redsn0w to the Original iOS 4 not iOS 4.1.

Download iOS 4.1 Beta 2
Download Redsn0w Beta 5
Download iTunes 9.2.1