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I'm sorry to say but no, There is no way to downgrade right now. Apple has stopped signing iOS 5.0.1 so therefore you cannot downgrade. The Dev Team is currently working on a jailbreak for it as well as an unlock so for now you'll have to sit tight until it comes out.
Hi, I have seen where you say that one should not update to the ios 5.1 if they are planning to jailbreak. I have already gone ahead and updated my jailbroken 3gs iphone to the to the ios 5.1, and it is now showing no service. Is there a way to undo this? How can i get my phone back working again? Will you please help me? Thanks