Okay, here we go. Greenpois0n has released a jailbreak for A5 devices. Currently it’s only available for the Mac, but a Windows version is “coming soon” (sorry to disappoint those of you without a Mac — just have some patience).
The jailbreak is called “Absinthe”, it’s untethered, it works (verified), and you can download it here.
Now, let me add a couple of tips. At the end of the jailbreak process, the tool will tell you to “Unlock the screen, if necessary, and tap the Jailbreak icon”. Note that when you unlock the screen, you will NOT see an icon titled “Jailbreak” but you will see an icon titled “Absinthe”. That’s the one you want to tap on.
If Absinthe hangs for any reason, go into settings, and turn VPN on and then off again. This should fix any hanging problems. If it doesn’t, reboot, and try VPN on-off again.
For more detailed instructions, try here: http://www.iphonehacks.com/2012/01/how-to-jailbreak-ipad-2-absinthe-ios-5-0-1-ios-5.html