One of the biggest reasons that I chose to stick with the tethered RedSn0w 0.9.6 release for my iPhone 4 is because of the beta version’s ongoing problems with Bluetooth support.

Up to this point, all of the beta versions of RedSn0w 0.9.7 — an untethered jailbreak released by the Dev Team — have thus far been devoid of Bluetooth capabilities. When using the beta, the Bluetooth option simply stated “Not Available.”

With the Dev Team’s latest update to the RedSnow beta, the Bluetooth hurdle has finally been eliminated, and now you can enjoy an untethered jailbreak with full Bluetooth support…

As with all versions of the RedSn0w 0.9.7 beta, you will need to have access to development 4.2b3 firmware in order to use this jailbreak. Unfortunately, there is only an OS X version of 0.9.7b5 thus far, and you can download it from our downloads section.

For your convenience, we have posted a full tutorial on jailbreaking your iPhone 4 running iOS 4.2.1 using the RedSn0w beta. Please keep in mind that this is still a beta jailbreak, meaning it is likely that you will still encounter bugs here and there.

One of the few big remaining bugs continues to be incompatibility with Skype; the app crashes as soon as you try to launch it. There are also reports of incompatibilities with iBooks.

Seeing as Skype is a heavily used app of mine, this is still a deal breaker for me. For those of you who are developers and don’t use Skype, RedSn0w 0.9.7b5 may be your ticket to untethered freedom.

What do you think? I’m still waiting it out…