Users who ended up using Redsn0w 0.9.5 Beta 5 or Pwnagetool 4.0 to jailbreak iOS 4.0 on iPhone 3GS & iPhone 3G are facing issue with iBooks app, needless to say the issue is caused by iOS 4.0 jailbreak tools and iPhone dev team has acknowledge this.
The good news is the fix for iBooks issue is ready; iPhone dev team has updated Redsn0w to Redsn0w 0.9.5 Beta 5 release 4 & Pwnagetool 4.0 to Pwnagetool 4.0.1. You will need to re-jailbreak your iPhone 3G/3GS iOS 4.0 just deselect Cydia (you don’t want to reinstall Cydia over itself) while jailbreaking again.
Download Updated Redsn0w
Download Redsn0w 0.9.5 Beta 5 Release 4 for Windows
Download Redsn0w 0.9.5 Beta 5 Release 4 for Mac
Download Updated PwnageTool
Download Pwnagetool 4.0.1 for Mac OS X
How to Guides for reference
How to Jailbreak iOS 4.0 on iPhone 3G with Redsn0w 0.9.5 Beta 5
How to Jailbreak iPod Touch 2G 4.0 with Redsn0w 0.9.5 Beta 5
How to Jailbreak iPhone 3GS 4.0 with PwnageTool 4.0/Pwnagetool 4.1









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