Custom ringtones without paying
Here are the steps that were used with the previous version of itunes.
1. Convert the song you want to use as a ringtone to AAC 128kbps. OR if it is already in this format, duplicate it. Then, in iTunes, add an additional word or letter to the title in the duplicate or new AAC (I just put "(ringtone)").
2. Drag the file onto your desktop, and edit the file in another program. I have Sound Studio which is pretty easy to edit an AAC file and add a fade in/fade out, but apparently Audacity and Garageband work as well. There is obviously a size limit on the file, the best guess on Macrumors.com so far is between 3.1 and 3.5mb. However, if the file is too big, it will not show up on your "Sounds" menu on the iPhone. I usually edit the song down to about a 20-30 second clip and save it.
3. Click Apple+I (or right click "Get Info"). Change the file name from .m4a to .m4r in the "Name & Extension" section. When asked if you want to change the extension, select "Use .m4r;". Also change the file name to what you want it to show up as on your phone. For example, by default it will be . I deleted the song track number.
4. Drag the file into iTunes. Since the "Ringtones" feature isn’t completely enabled yet, it won't show up anywhere in your Library, but once you Sync your phone, the ringtone will show up in a list under the "Ringtone" tab. You can manually delete the file from the Home > Music > iTunes > iTunes Music > Ringtones, but this won’t delete it from iTunes. For that you will have to re-create your iTunes Library which will reset all play counts and dates added. So just deal with the extra files until the feature is completely enabled.
5. After that, plug your phone up and click the "Ringtones" tab. You can choose to "Sync All" or select the ringtones you want. If it shows up in your Ringtones list in iTunes, but doesn't show up on your phone, the problem is that the file size is too large. Edit it down and try again. Otherwise, click "Apply" and enjoy. No more Marimba.