Download redsn0w 0.9.6: http://blog.iphone-dev.org/post/1160213613/redsn0wier
Site: http://stateofjailbreak.com/
In this State of Jailbreak video I discuss two new jailbreaks for iOS 4.1, redsn0w 0.9.6 as well as Sn0wbreeze 2.0. Both of these programs will jailbreak the iPhone 3G and iPod touch 2G as well as Sn0wbreeze promises to jailbreak the iPhone 3GS and iPod touch 3G. However there are a lot of problems going around for Sn0wbreeze with bugs and glitches keeping most people from being able use it. I will post a full tutorial when it is updated however.