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I'm looking to upgrade my 3GS to the new iOS 5.

These are the steps which I think are required.
Do correct me if I'm wrong please
1. Download firmware
2. Make a custom firmware out of it by preserving BB
3. Update
4. Jailbreak via latest version of reRABnow.

Okay, so how do I unlock it afterwarRAB.
Kind of confused on that part.

Suggestions would be really appreciated.
 
The process is correct.
As for unlocking it after JB, go to Cydia and find "Ultrasnow" which will unlock your iPhone if your BB is supported.
 
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