Well the 6th beta of Redsn0w 0.9.7 has been released. This version fixes all Skype related issues which were hampering users ever since the first beta of this untethered iOS 4.2.1 jailbreak.
This version fixes Skype (and as expected all along, the Skype issue turns out to be unrelated to sandbox patches).
Unlike the last few betas, you can freely run beta6 over beta5 without a problem (but for testing purposes, we’d really like people to try both ways….from stock, and from already jailbroken). If all you want to do is fix Skype and you’re already untethered using beta5, just run beta6 and deselect every checkbox.
Now that the Bluetooth and Skype related issues have been fixed, the iPhone Dev-Team is now working on porting the “Monte” technique back to iOS 4.1. This will enable users to untether the iOS 4.2.1 jailbreak on iPhone, iPad and iPod touch without having 4.2b3 SHSH blobs saved on Cydia.
You can follow our instructions for untethered jailbreak (skip Step 4 of usbmuxd as it is no longer needed) by following our complete step by step guide posted here to jailbreak (untethered) iPhone, iPad and iPod touch on iOS 4.2.1 with Redsn0w 0.9.7.