The iPhone Dev-Team recently released RedSn0w 0.9.8b7 which brings explicit support for a tethered 4.3.5 jailbreak as well as new iOS 5.0b6 iPad 1 jailbreak:
Apple updated the iPad1 iOS5b6 IPSW without changing its version number or filename, so we’re releasing redsn0w 0.9.8b7 to handle both the original and changed IPSW. We’ve also added explicit support for a tethered 4.3.5/4.2.10 jailbreak (instead of pointing at the 4.3.4/4.2.9 IPSWs) and fixed a 4.2.10 problem.
RedSn0w can perform a tethered jailbreak on iOS 4.3.5 for all devices except the iPad 2, according to MuscleNerd’s tweet:
So those who really do want tethered 4.3.5 can use redsn0w pointed at 4.3.4 (except iPad2)
We strongly recommend NOT to update to iOS 4.3.4 or iOS 4.3.5 to preserve untethered jailbreak. We will soon post step-by-step tutorials on how to perform iOS 4.3.5 tethered jailbreak.
The iPhone Dev-Team has released RedSn0w 0.9.8b3 which can perform a tethered jailbreak on iOS 4.3.4. This means that you will have to connect your device to a computer and run redsn0w each time you restart.
For the convenience of kernel hackers like @comex and @i0n1c, we have a new redsn0w 0.9.8b3 that supports a TETHERED jailbreak for iOS 4.3.4 on all devices that have 4.3.4 except the iPad2. The vast majority of people will want to stay back at 4.3.3 because that’s where the untethered jailbreak is! There are no new features in 4.3.4 – only fixes for jailbreak exploits.
Also, this is a good time to remind everyone (since we’re still seeing confusion about this): iPad2 owners with a baseband (3G or CDMA) cannot currently use saved blobs to go back to 4.3.3 once the signing window is closed. This is unlike every other device, so don’t be confused! iPad2 owners with basebands should stay away from all updates to maintain your jailbreak!
This jailbreak works with iPhone 3GS, iPhone 4, iPad 1, iPod Touch 3G and iPod Touch 4G. It does not work with iPad 2.
You can download RedSn0w 0.9.8b3 from here: (Mac, Windows)
Redsnow is easy to use, it is available for Windows and Mac OS. As usual for unlockers – do not update to 4.3.3, use PwnageTool (MAC) and Sn0wBreeze (Windows) to preserve the baseband.