Just today 4.3.5 was released and the jailbreak solution is already here. Point Redsn0w 0.9.8b3 at your 4.3.4 firmware and the jailbreak should work fine. Redsn0w 0.9.8b3 jailbreaks 4.3.5 in a tethered state meaning you will have to run redsn0w to boot up your device every time it turns off.
iPod Touch 4G
iPod Touch 3G
Click Here to get to the downloads section. Downoload Redsn0w 0.9.8b3 for your computer.
This jailbreak is tethered and does not support a carrier unlock.
1. Download 4.3.5 ipsw and install it to your device you can get it here.
2. Download Redsn0w with link in download section.
3. Start up Redsn0w and click browse and select your devices 4.3.4 firmware file. (found here)
4. Next just check Install Cydia and hit next.
5. Turn off device and plug into computer, hit next and follow instructions to dfu mode.
6. Once in dfu mode redsn0w will start to jailbreak automatically.
7. You are done! if you ever need to turn your iPhone back on after it has been off jailbreak installs will not work because it is tethered. Use Redsn0w and repeat steps 3-7 checking “just boot tethered” instead of “install cydia”.