Good news for jailbreakers running iOS 5 Beta 7, latest version of Redsn0w will let you jailbreak your newly updated iOS device. While Redsn0w 0.9.8b7 was released for iOS beta 6, it does suport beta 7. This jailbreak works with any iOS device, except the iPad 2.
There's a few points to keep in mind when jailbreaking iOS 5 beta 7. First, it's a tethered jailbreak so you'll have to connect your iOS device to your computer every time you restart your iPhone, iPad or iPod touch. Secondly, the Redsn0w utility was released right before iOS 5 beta 7 and is off by a version. To jailbreak, iOS 5 beta 7, you'll have to point Redsn0w to the IPSW for beta 6 if you want it to work. Confused? Then check out some step-by-step directions at Smash iPhone or ModMyi.