Follow steps:

1st time iPhone status

DOWNLOADS


OFW Mobile point: Firmware
sn0wbreeze-v2.8b11.exe
iTunes 10.5.2 for Windows XP, Vista or Windows 7
redsn0w_win_0.9.10b3
[ UltraSn0w 1.2.5 & MobileSubstrate 0.9.3901 ].rar
iFunBox V1.7.747.603

1.Build CFW Using Snowbreeze-v2.8b11 for iPhone 4 GSM
Open Snowbreeze-v2.8b11
Browse 5.0.1 (4 GSM): iPhone3,1_5.0.1_9A405_Restore.ipsw
Choose for Expert Mode
Select Build IPSW and click next [wait ti'll the process been finish]
your Build IPSW is located on your desktop

2.Restoring With CFW
Edit your hostfile
how:Go to my computer/drive C/windows/system32/drivers/etc/host-open with note-pad

note:save your host file on another folder (you might needing it)

erase all the content of your hostfile and replace it with my hostfile and save it.


127.0.0.1 localhost

127.0.0.1 tonec.com
127.0.0.1 Tonec Home, Offshore Software Development, Custom Programming, Web Design
127.0.0.1 registeridm.com
127.0.0.1 Internet Download Manager: the fastest download accelerator
127.0.0.1 secure.registeridm.com
127.0.0.1 internetdownloadmanager.com
127.0.0.1 Internet Download Manager: the fastest download accelerator
127.0.0.1 secure.internetdownloadmanager.com
127.0.0.1 mirror.internetdownloadmanager.com
127.0.0.1 mirror2.internetdownloadmanager.com
127.0.0.1 mirror3.internetdownloadmanager.com
127.0.0.1 appldnld.apple.com
74.208.10.249 gs.apple.com
PWNED your idevice using ibooty or redsnow_win_0.9.10b3 or any other tools that can support ios5.0.1..
must be on Black DFU mode

Open itunes
your iDevice detected as recovery mode..
hold shift on your keyboard and tick restore
locate your CFW that you build on your desktop and open
wait till the process finish..

you will notice that cydia won't work
all you have to do is just boot tethered

Open redsnow
select extra

manual select ipsw
slect just boot tethered