The only way to do it without being jailbroken is to pay the monthly fee through your provider unfortunately

No problem on the help, I've been doing this for a few years now and love educating and helping other people with it.
Ya, the SHSH blobs threw a huge wrench in the jailbreaking community(introduce back in iOS4).
@notcom, the guy who created TinyUmbrella(to save SHSH files) is supposedly working on a piece of software that will let you restore any firmware version without SHSH blobs and without using iTunes it will be a complete stand-alone tool that will not check Apple server to verify firmware, however, he originally announced it in January of last year and hasn't said anything about it since.
As for the iOS5 jailbreak, there is already a tethered jailbreak for the iOS5 beta firmware, but likely the developers will not start talking about a jailbreak for the public release until it's released since they don't want to tip Apple off to any exploits they've found so far.
For all we know, they could already have found an exploit for an untethered jailbreak and as long as Apple doesn't find it themselves and patch it before a public release, we could see a jailbreak the day it gets released or it could be weeks or even months, only time will tell!