Hello,
I was able to jailbreak my PW2 on 5.12.2.1.1 recently by following the
KindleBreak thread, so I believe it is possible. Do you have a "kindlebreak_log.txt" in your root USB directory? If you do not, then I would retrace your steps in the KindleBreak thread and make sure that the files from "jb-kindlebreak.zip" ended up in the right place and that you typed "file:///mnt/us/kindlebreak.html" correctly.
I successfully installed KUAL and MRPI, but I have been having troubles installing much else, like NiLuJe's 5.x USB networking or screensavers hacks, or KOReader. MRPI doesn't seem to want to touch the .bin files I put in "/mrpackages" and KOReader doesn't do anything after I try to open it. So yeah, I am also somewhat stuck, and would appreciate clarification if anyone more experienced is reading this thread