Hacker pod2g has announced on his blog that the jailbreak for iOS 5.1.1 will be released soon ("in a few weeks", he said). According to him, the Dev team is still testing the functionality of iOS 5.1.1 devices after jailbreaking. Unlocking will follow right after.
According to pod2g, the first jailbreak release will be the "untethered", which means user will not lose their phone's unlocking (in case it was not factory unlocked) and neither will them lose the jailbreak process if the phone runs out of battery (happens when the jailbreak is "tethered").
Pod2g has said that the jailbreak will be compatible with all iDevices running iOS 5.1.1 except iPhone 3GS and Apple TV 3, all the other devices which are updatable to iOS 5.x will be compatible. The release will be available on Cydia (app jailbroken iOS devices have) when it is released.