Pwnage Tool which is the work of iPhone Dev team has finally been released with its latest version, 4.1 operates on the Limera1n exploit made by GeoHot who is another Apple hacker. So far the iPhone 4, iPhone and iPhone 3GS on iOS 4.1, Apple TV 2G running iOS 4.1, iPod Touch 4G/3G on iOS 4.1, and iPad on iOS 3.2.2 can be jailbreaked using this tool.
Redmond Pie has also made a step by step guide on how to jailbreak your iOS 4.1 capable device using PwnageTool 4.1, his tutorial can be found HERE PwnageTool is one of the best ways to Jailbreak your iOS device, while many people complain that GreenPois0n isn't as good PwnageTool gets the job done.
Source: RedmondPie
