Jun 22, 2009
There has been an increase in the number of complaints of Cydia crashing on iPhone unlocking via RedSn0w 0.7 patch for the Apple 3.0 OS. A word of caution has been running that may be it too early for iPhone users to go ahead with the 
beta version of RedsnOw for Jailbreaking their iPhones.The majority of the complaints has been from the iPhone/iPod 2G users who have upgraded their OS to Apple 3.0 and then tried to Jailbreak.
Though most of the complaints are of the same type i.e after they unlocked their iPhones and tried to use Cydia ,( after the Jailbreak) it would crash during the very first download or after downloading either it just wont open or hangs ,leaving the users frustrated. More over the apps downloaded would not show up on the spring board.
During the installation some have even reported Cydia not being installed on iPhone/iPod even though it showed Ok while installation.Most stated that during installation everything is fine as specified on the websites but after installation ,Cydia crashed and Youtube app did not work .
Most of them are now re-Jailbreaking the iPhone but the problem persists even after Re-Jailbreaking!
Hope the Wait is not too long before RedSnOw fixes it up!
Here are a few links of the Forum discussion on this issue:
iPod Touch Forum for Bug’s Reported while Jailbreaking[iPodTouchFans General Bugs]
iPod Touch Bug’s While Jial Breaking[iPodTouchFans Cydia issue]
iPhone Forum for Bug’s in RedSnoW 0.7
iPhone Jailbreak Bug’s[Modmyi Specific to RedSnOw bugs]
[ratings]
Recent Updations to the Redsn0w Jailbreaking software the Red Sn0w 0.7.2 works perfectly fine and cydia doesn’t crash, everything’s working absolutely fine on my iPhone!
I upgraded my iPhone 1.1.4 to 3.0 while i faced the Jailbreaking problems from RedSn0w 0.7 when I jailbreaked my iPod touch, which I again re-Jailbreaked with 0.7.2 and it works fine now!
0.7.2 Has exactly the same problem on my iPhone. Even after re-jailbreaking. Any ideas?
Are you installing both cydia and icy?
IF yes then unlock and install only cydia this time.
If not then check if you are installing cydia the correct way via you red snow:
(Check out this video)
http://www.youtube.com/watch?v=YxYzzcBj5Ac
Or
You can try downloading Cydia Manually on your iPhone
Follow the below link:
http://www.pure-mac.com/iphone/installers.html#cydia
try out redsn0w 0.8
They think that they are not as good as the paid versions and do not possess the capability of thwarting attacks by viruses. This is totally wrong. The free version of these anti virus programs are provided by the same organizations that manufacture the paid ones. There might be a few differences though. It some of them, the automatic download of new signature files are not there and in others there is no online support. These options are available only with the paid version. It is high time that they downloaded such programs and protected their valuable data against threats from online attacks.