Limera1n is released on 10/10/10 what a nice date
This jailbreak tool is for people who wanna jailbreak their iOS4.1 devices (ie iPad, iPhone 3G/3GS/4 and iPod Touch 3G/4G).
I have did this with success, hope it helps you.
STEP 1: Download Limera1n here.
STEP 2: Connect your iPhone/iPod Touch using USB to the computer (Windows). Execute limera1n.exe.
STEP 3: Click on “make it ra1n”.
STEP 4: Wait and let your device goes into recovery mode where you will see “entering recovery…” in limera1n.
STEP 5: Now, it will ask you to “hold home + power”. Do it.
STEP 6: Until you see it says “release power button”. You release only the power button and continue holding your home button.
STEP 7: Then, you will see “in DFU mode… wait”. Once you are done, the limera1n badge will appear in your device. And, you will see a windows popup saying your jailbreak is done. Here, your device will be shutted down. You can on it as usual.
STEP 8: Launch limera1n in your homescreen. (You will need Wifi/3G connection here) Touch on the only package Cydia and Install it. Allow it some time to download Cydia. Reboot your device. Cydia is ready.
** If you want to get access to those paid apps in Apps Store for free, follow the steps below to download Installous.
STEP 1: Cydia -> Manage -> Sources -> Edit -> Add
STEP 2: Enter the link “http://cydia.hackulo.us” and Add Source then Add Anyway.
STEP 3: After adding it successfully, go to Cydia -> Manage -> Sources -> Hackulo.us -> Installous. Install it.
STEP 4: Once it is installed, Installous will appear in your device homescreen. You can download most of those paid apps like in App Store through Installous on your device. Alternatively, you can also download .ipa files from Apptrackr from your computer, double click on the .ipa files (it will then appear in your iTunes). Sync these cracked apps into your device like how you sync as usual (You are able to do so because the required App Sync for iOS 4.1 is already installed along with Installous automatically).
Enjoy!