Today MuscleNerd posted that a new beta Version of Redsn0w to Jailbreak IOS 5 Beta 3. The older version was causing problems with Appstore Apps/Games loading. This is confirmed to be fixed. Please Remember this is a Tethered Jailbreak meaning if you turn off the device or let it run out of battery you will have to plug it into the computer to get your apps to work again. It is only Untethered for the iPhone 3GS OldBootRom. This is only intended for Developers. Instead of pointing Redsn0w to IOS 5B1 use IOS 5B3 iPSW.
Quote (MuscleNerd):
We’ve update redsn0w to account for the sandbox changes that affected App Store apps in 5.0b3 (and it now recognizes the IPSWs for all three betas so far). If you already jailbroke 5.0b3 using the previous redsn0w, you don’t need to re-jailbreak…just use this updated version to boot tethered. Start pointing redsn0w at the 5.0b3 IPSW starting with 5.0b3.