a. 1st. Did you always started "Tinyumbrella" when Apple released a new firmware?
b. 1st. Find iOS 4.3.x ipsw
a. 2nd. If you did, you should have 4.3.x blobs for your iPod touch 4 (go further to 3th)
b. 2nd If you didn't, You are out of luck, no upgrade to 4.3.x for you, only 5.0.1 is an option (go further to 10th)
3th. You are lucky, you have all your blobs for all iOS FW from Apple
4th. Start TinyUmbrella and start TSS server
5th. Start iTunes
6th. Press the "shift" key while pressing update (or so) and browse to your iOS 4.3.x ipsw
7th. Follow on screen instructions
8th. Jailbreak
10th. Be sure to backup your iOS 4.2.x shsh blobs before upgrading to iOS 5.0.x
11th. Upgrade to iOS 5.0.1 (Do so before iOS 5.0.2 or 5.1 is out, Apple is now still signing these new shsh blobs)
12th. You can do a Tethered Jailbreak on iOS 5.0.x now, UnTethered will be out soon i heard
13th Backup your SHSH Blobs for iOS 5.0.1 with latest redsn0w or with iFaith from ih8sn0w
With
iOS 5.0.2 and
iOS 5.1 release imminent, it remains to be seen if pod2G will release the untethered jailbreak soon or wait for Apple to release the iOS software updates.
If iOS 5.0.2/5.1 is released and his untethered jb still works, then you better wait for iOS 5.0.2 or 5.1, if his JB doesn't work, you better be sure to have the correct new SHSH Blobs for iOS 5.0.1 to do a untethered jb (or be able to upgrade/downgrade to 5.0.1)