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If you have an iphone 4s or 5, or an ipad/ipod using the same chipset, you'll want to upgrade to a 5.x version in order to achieve a jailbreak. (I'd recommend 5.1.1)
That's not something I've done before, but try here. It deals with restoring to the same version, but the concept is the same, just use the appropriate blob for the version you want to upgrade to:
http://www.guidemyjailbreak.com/restore-iphone-ipad-ipod-sfw/
If you have issues there, you might be able to use the newest version of redsn0w to upgrade to a 5.x version - although the changelog does imply it will only work when moving from one 5.x version to another. Worth a shot though: http://blog.iphone-dev.org/
Sorry this isn't something I can't walk you through, but it should point you in the right direction since Luke doesn't follow this board much anymore.