DinoD7, who works with iH8sn0w, has just posted a video on his Youtube channel showing a proof that there's iOS 4.1 jailbreak. He shows up iPhone 3GS on iOS 4.1 already jailbroken using Sn0wbreeze, he says that iH8sn0w will release the tool really soon. DinoD7 was the first one to test this tool and it worked successfully.