in case you folks don't know about this, but you can use a program called iRinger, it's free, but it will take any song that you have, allow you to edit it however you want to and even add some DSP (that's effects in case no one knows). It will also automatically add them to the iTunes folder and they will automatically pop up in iTunes.
iRinger :: iPhone Ringtone Factory
The irony about all this DRM is that I actually make my own custom sounds and ringtones, ergo... I write and sequence my own stuff, and because they aren't covered under any DRM iTunes didn't want to use my custom sounds...
Go figure, I am my own copyright/copyleft/creative commons/whatever licensed owner to my own music...