Got it working. Not exactly the easiest JB ever but not too bad. It too two tries to get Cydia loaded plus a reboot but finally got it up.
Here is what I did. Maybe it will help:
I'm on a Mac
I updated iTunes to 10.1.2
I "checked" the box to make iTunes NOT sync automatically when I plugged in my iPhone to the computer. (This was more for convenience.)
I did NOT turn off my iPhone like the direction said to in the Forums. I left it on so that is was just "charging" when I plugged it into the computer.
I then open GreenPo1son on my Mac.
I followed the directions on GP to put my iPhone in DFU mode instead of the Video the TiPB directions take you too.
Once iPhone went "blank" I hit "JailBreak" icon on GP.
Sat back and watched.
Like I said, It took about twice to download Cydia from Loader, then I had to ReBoot the iPhone to get Cydia to work. I also had to do some updates on Cydia before I download any apps. Standard updates though.
So far so good! I have not and am NOT planning on installing Winterboard though. Never liked it that much.
Good Luck! Maybe this will help some one.