Following the Chronic Dev Team, who pushed an update to their Corona 5.0.1 Untether to fix launchctl issue, iPhone Dev Team has updated their redsn0w tool to version 0.9.10b2 that addresses the same error. The root cause of launchctl issue was first identified by planetbeing and later the solution was proposed by saurik.
Those who are unaware, launchctl is an application which assist the tool to load and unload daemons. That’s why some Cydia apps that relied on daemons did not work well with the iOS 5.0.1 untether. It is therefore highly recommended to install redsn0w 0.9.10b2 over redsn0w 0.9.10b1 or update Corona 5.0.1 untether to 1.0-3.
In case you have already untethered jailbroken your iPhone, iPad or iPod touch on iOS 5.0.1 using redsn0w 0.9.10b1, just re-run the latest version of redsn0w (download links below) in jailbreak mode. Alternatively, run corona 1.0-3 over redsn0w 0.9.10b1
New jailbreakers, should use redsn0w 0.9.10b2 for untethered iOS 5.0.1 jailbreak iPhone 4, iPhone 3GS, iPod touch 4G, 3G and iPad 1G. Currently no jailbreak is available for A5 devices such as iPad 2 and iPhone 4S.
Lead hacker of iPhone Dev Team Musclenerd has advised the jailbreak community to de-select “Install Cydia” and do a controlled “slide to power off” shutdown of your device before running redsn0w 0.9.10b2.