Unless you have saved your SHSH your forced to upgrade to 5.0.1...unless you on an old bootrom 3GS you will have the option of upgrade to 4.2.1....
I would update to 5.0.1 and jailbreak....this window of opportunity may be closed to you soon as Apple will release IOS 5.1 soon closing any jailbreaks.
Most Apps in the AppStore are geared towards the newer firmware(5.0.1 >)



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